Moore v. Union Fraternal Acc. Ass'n

• Decision Date: 22 October 1897
• Citation: 72 N.W. 645,103 Iowa 424
• Parties: SUSAN E. MOORE v. THE UNION FRATERNAL ACCIDENT ASSOCIATION, F. R. CROCKER, and J. E. LOCKWOOD, Appellants
• Court: Iowa Supreme Court

72 N.W. 645

103 Iowa 424

SUSAN E. MOORE v. THE UNION FRATERNAL ACCIDENT ASSOCIATION, F. R. CROCKER, and J. E. LOCKWOOD, Appellants

Supreme Court of Iowa, Des Moines

October 22, 1897

Appeal from Council Bluffs Superior Court.--HON. J. E. F. MCGEE Judge.

ACTION at law by plaintiff, as beneficiary of a certificate of life insurance issued April 27, 1892, to John D. Moore, who died December 7, 1893. Trial to court; judgment against defendants for the full amount of the policy; and they appeal.

Reversed.

T. M Stuart for appellants.

Mayne & Hazelton for appellee.

LADD J. KINNE, C. J., took no part.

OPINION

LADD, J.

The first question arising on the record is whether the Union Fraternal Accident Association was organized as required by the statutes of this state. All the provisions of chapter 65 of the Acts of the Twenty-first General Assembly were complied with. But it is insisted this was simply amendatory of the law as it existed, and that by failing to follow the provisions of sections 1122 and 1140 of the Code of 1873, by publishing notice of intention to incorporate, and by including the word "Mutual" in the title, the incorporation was not perfected, and the incorporators are chargeable as partners. An examination of chapter 65, referred to, demonstrates that, excepting statutes applicable to all insurance alike, it is complete in itself, and was so intended by the legislature. It was enacted for the purpose of regulating the organization and operation of mutual benefit associations, as plainly stated in the title; and such associations as are not already in existence are prohibited from engaging in business before complying with all the provisions of the act. On the other hand, upon compliance with the act, the auditor of state is required to issue a certificate authorizing the association to transact business for one year from April 1 of the year of its issue. Section 18. The association is therefore organized to do business without doing more than comply with the conditions of this act. Throughout the chapter associations are referred to as "organized under this act," and penalties are imposed for violations thereof. The publication of notice, as required in section 2, after approval of the articles of incorporation, obviates the necessity of some other kind of notice, and the whole plan is essentially different than that provided in section 1122 and 1123 of the Code. By fixing a rule for the adoption of a name in section 3, the other method seems to be excluded; and the necessity of including the word "Mutual" is obviated by requiring each application to have printed in red ink, in a conspicuous manner along the margin of the application, these words: "It is understood and agreed that the amount to be paid, when the certificate or policy issued on this application becomes a claim, shall be dependent upon the amount collected from an assessment to meet such claim." Section 4. The term "Mutual" shall be included only in the titles of companies organized as provided in chapter 4 of the Code, and there was no attempt to organize this association under that chapter. The laws of the Twenty-first General Assembly take the whole subject of insurance under mutual benefit companies out of chapter 4 of the Code, prohibit such insurance "upon any other event than that of death or disability resulting from accident to the member," and make complete and ample provisions for their organization, management, and control.

II. It is said the policy on its face is an absolute promise of indemnity. That part preceding the naming of benefits is in these words: "In consideration of the warranties in the application of this certificate, which application is made a part of the contract, and the sum of five dollars as a membership fee, and of such future payments as may be required under its articles of incorporation and by-laws does hereby accept John D. Moore, of Brimfield, state of Illinois,--occupation, proprietor and salesman agriculture store,--a member of this association, subject to all the conditions hereinafter contained, and entitled to the following benefits." No conditions other than above set out appear in the body of the policy, but under the heading "Agreement and Conditions under Which This Certificate is Issued and Accepted," on the back of the policy, is this among other provisions: "This...