Missouri State Life Ins. Co. v. Hinkle

• Decision Date: 28 April 1934
• Citation: 74 S.W.2d 1082
• Parties: MISSOURI STATE LIFE INS. CO. v. HINKLE.
• Court: Tennessee Supreme Court

Page 1082

74 S.W.2d 1082

MISSOURI STATE LIFE INS. CO. v. HINKLE.

Court of Appeals of Tennessee, Eastern Section.

April 28, 1934.

Certiorari Denied by Supreme Court October 13, 1934.

Appeal in Error from Circuit Court, Carter County; D. A. Vines, Judge.

Action by Eureka Hinkle against the Missouri State Life Insurance Company. Judgment for the plaintiff, and the defendant appeals in error.

Reversed and dismissed.

Cox, Taylor & Epps, of Johnson City, and Harold D. Knight, of St. Louis, Mo., for Missouri State Life Ins. Co.

Divine, Guinn & Mitchell, of Johnson City, for Eureka Hinkle.

DE WITT, Judge.

This action was brought by Eureka Hinkle, widow of Earl Hinkle, as beneficiary, upon a certificate issued to him while he was an employee of the American Glanzstoff Corporation, by the Missouri State Life Insurance Company, under a policy of group insurance which it had issued upon the employees of said corporation. Earl Hinkle died on January 7, 1931. His certificate was dated December 10, 1929. It provided that under and subject to the terms and conditions of a group policy of insurance No. G — 2592, issued and delivered to the American Glanzstoff Corporation, the employer, the Missouri State Life Insurance Company insured the life of Earl Hinkle for the sum of $1,100 payable to his wife, Eureka Hinkle, as beneficiary, "if death shall occur while an employee of the employer during the continuance of the insurance under this certificate." It further provided:

"The insurance provided by the said policy for the employee shall terminate at the expiration of the period for which premiums are last deducted by the employer from the pay of the employee, or remitted by the employee to the employer, unless the employee shall elect to continue the insurance in accordance with the conversion privilege given on the second page of this certificate."

The employment of Earl Hinkle was terminated on December 4, 1930, by discharge by the corporation.

On November 10, 1930, the sum of 60 cents was deducted from his wages and used to pay the premium on this insurance until December 10, 1930. No further payment of premiums was made.

The group or master policy also contained the provision that the insurance on any employee should cease at the expiration of the policy month for which premiums were last received by the company for such employee, except that if an employee were disabled, given leave of absence, or temporarily laid off, the employment need not be considered terminated unless the employer should so elect. This group policy also provided as follows:

"Individual Certificate of Insurance and Conversion Privilege — The Company will issue to the Employer for delivery to each Employee whose life is insured under this policy, an individual certificate setting forth a statement as to the insurance protection to which he is entitled and to whom payable. Any Employee of the Employer covered under this group policy shall, in case of the termination of insurance for any reason whatsoever, be entitled to have issued to him by the Company without evidence of insurability upon application to the Company made within thirty-one days after such termination and upon the payment of the premium applicable to the class of risks to which he belongs and to the form and amount of the policy at his then attained age, a policy of life insurance in any one of the forms customarily issued by the Company, except term insurance, in an amount equal to the amount of protection under such group insurance policy at the time of such termination."

"Grace Period — Thirty-one days of grace will be allowed for the payment of every premium after the first, during which period the policy remains in force."

This provision for days of grace is not expressly contained in the certificate.

The certificate issued to Earl Hinkle under this policy contained the following:

"Conversion Privilege. The employee shall, in case of the termination of this insurance for any reason whatsoever, be entitled to have issued to him by the Company without evidence of insurability upon application to the Company made within thirty-one days after such...