Moore v. Standard Mut. Life Ass'n of South Carolina
| Decision Date | 04 August 1939 |
| Docket Number | 14933. |
| Citation | 4 S.E.2d 251,191 S.C. 196 |
| Parties | MOORE v. STANDARD MUT. LIFE ASS'N OF SOUTH CAROLINA. |
| Court | South Carolina Supreme Court |
The paragraph of the complaint referred to in the opinion follows:
(5) That about a month or two subsequent to the delivery of the policy and subsequent to the collection of the aforesaid $17.45 by the defendant through its authorized agent, or agents, the Home Office of the defendant began notifying the plaintiff that certain premiums were due. The plaintiff upon contacting the authorized agent or agents of the defendant and inquiring why such notices should be coming when they knew that the premiums were already paid eight months in advance, was told by the agents or agent of the defendant to hold on to his receipt as the same would show that the policy was paid eight months in advance and that the same was credited to his account.
(6) That on or about the last week in February, 1938, the defendant sent the plaintiff another "Premium Notice" stating thereon that the sum of $8.55 was due for six months future premiums as of March 1st, 1938, and $1.50 for one month's future premium as of March 1st, 1938, but the latter was stricken out and the sum of $8.55 as representing the future six months premiums was stamped paid as of January 19, 1938, the date of the policy.
(7) That on or about the latter part of August, 1938, the plaintiff mailed to the defendant a money order for the sum of $1.75 to be applied as a credit on the future premiums but on September 2, 1938, the defendant returned the money to the plaintiff and advised the plaintiff that the aforesaid policy was cancelled and lapsed for non-payment of premiums due March 1, 1938.
(8) That the aforesaid policy has been wilfully, wantonly and fraudulently cancelled by the defendant without just cause or excuse and with intent to cheat and defraud the plaintiff of his rights thereunder in the following particulars, to wit:
A. In that the defendant received the plaintiff's money at the time aforesaid, to wit: January 17, 1938, which was paid as advanced premiums for eight months on the said contract of insurance and then with intent to cheat, wrong and defraud the plaintiff out of his rights under the policy and the premiums paid, refused and failed to credit the same as premiums and then without just cause or excuse, cancelled the said policy.
B. In that the defendant, after receiving the plaintiff's money which was paid as future advanced premiums for eight months from the date of the policy, to wit: January 17, 1938 refused to accept any further premiums which were tendered on the latter part of August, 1938, to wit: $1.75, being a monthly premium, well knowing that the policy was in full force and effect and that no just excuse or reason existed for such refusal, but was done with solely the intent to cheat, wrong and defraud the plaintiff of his rights under the policy and unjustly enrich itself from the plaintiff's premiums by canceling the same, alleging such cancellation to have been as of March 1 1939.
C. In that the defendant received the plaintiff's money as of January 17, 1938, with the distinct understanding that the same would cover eight months advanced or future premiums and then with intent to cheat, wrong and defraud the plaintiff of his premiums and rights under the policy, converted the same to its own use and never gave the plaintiff any credit therefor as such payments.
D. In that the defendant without just cause or excuse canceled the plaintiff's policy as of March 1, 1938, when it well knew that it had received money from the plaintiff as eight months advanced premiums on the said policy which it refused to return to the plaintiff and that the retention of the same was done for the sole purpose of cheating, wronging and defrauding the plaintiff out of the same.
E. In that the defendant used as part of its scheme to cheat, wrong and defraud the plaintiff out of his premiums and rights under the policy, false information which its agents imparted to the plaintiff, to wit: By the agents informing the plaintiff upon his inquiring why the notices of premiums due were being sent to him after he had already paid the same in advance, was told by the agents that the policy was in full force and effect and the premiums for eight months already paid in advance were duly credited, while as a matter of fact the defendant knew the same had never been credited to the plaintiff's account, but had been converted to its own use.
Edwin H. Cooper, of Columbia, for appellant.
Huff & Huff, of Laurens, for respondent.
This action was commenced on September 17, 1938, and the appeal comes from an order overruling appellant's demurrer to respondent's complaint alleging the fraudulent cancellation of a contract of insurance issued by appellant to respondent. A summary of the allegations of the complaint is necessary for the determination of the one issue involved herein.
In consideration of the sum of $1.75 per month, the appellant on or about January 19, 1938, made, executed and delivered to respondent a contract of life insurance, containing total and permanent disability benefits and provisions for an old age benefit, subject to certain conditions which are not pertinent to the question raised. Respondent's application was signed on or about January 17, 1938, at which time he paid to an agent of appellant the sum of $17.45, of which $7.50 represented payment of application and medical fee, and the balance as full payment in advance for eight monthly premiums commencing January 19, 1938. The acts and purposes, and the alleged tenor of the acts and purposes, of the appellant, are to be found in paragraphs 5, 6, 7 and 8 of the complaint, which will be reported.
The...
To continue reading
Request your trial