National Reserve Life Ins. Co. v. Humphreys

• Court: Kansas Supreme Court
• Writing for the Court: DAWSON, Chief Justice.
• Citation: National Reserve Life Ins. Co. v. Humphreys, 145 Kan. 373, 65 P.2d 296 (Kan. 1937)
• Decision Date: 06 March 1937
• Docket Number: 33219.
• Parties: NATIONAL RESERVE LIFE INS. CO. v. HUMPHREYS. [*]

65 P.2d 296

145 Kan. 373

NATIONAL RESERVE LIFE INS. CO. v. HUMPHREYS. ^[*]

No. 33219.

Supreme Court of Kansas

March 6, 1937

Syllabus by the Court.

Alleged misrepresentation in application for life policy as to insured's prior health and medical treatment by failure to disclose that insured had previously suffered from hyperacidity and ulcer of stomach held not to require cancellation of policy or preclude recovery thereon where cause of insured's death was pneumonia (Gen.St.1935 40-418).

Where insured who had obtained life policy in July, 1925, on August 5, 1933, made application for additional insurance with same insurer, statement in health certificate of August 9, 1933 that insured had not undergone medical or physical treatment since date of his last statement held not false notwithstanding he had been subjected to surgical operation for gastric ulcer in 1929, since statement in health certificate referred to statements made in application on August 5, and not to medical examination occurring in connection with issuance of first policy.

In an action to cancel a life insurance policy procured through warranties and representations made by the insured, on which plaintiff relied, and which it alleged were false, the pleadings examined and held that the statements signed by the insured were not fairly susceptible of an interpretation that they were untruthful; and held also that if the facts were misrepresented by the applicant for insurance, the statute G.S.1935, 40-418, was controlling, since the facts allegedly misrepresented did not contribute to the death of the insured.

Appeal from District Court, Hodgeman County; Fred J. Evans, Judge pro tem.

Suit by the National Reserve Life Insurance Company against W. E Humphreys, administrator of the estate of Joseph W. Humphreys, deceased. From an adverse judgment, plaintiff appeals.

DAWSON, C. J., and THIELE and WENDELL, JJ., dissenting in part.

Robert Stone, James A. McClure, Robert L. Webb, Beryl R. Johnson, and Ralph W. Oman, all of Topeka, for appellant.

Elfrieda Kenyon, of Jetmore, for appellee.

DAWSON Chief Justice.

This was an action to cancel an insurance policy on the grounds of misrepresentation and breach of warranty upon which plaintiff relied when it was issued.

On July 2, 1925, the late Joseph R. Humphreys of Hodgeman county applied to the plaintiff company for life insurance in the sum of $2,500. The usual incidents to such a transaction were dispatched and the policy was issued.

On August 5, 1933, Humphreys made application for additional insurance in the sum of $1,000. On a blank form of application prepared by the Insurance Company he gave certain information touching his occupation, his age and place of residence, and named his mother as beneficiary. This document concluded with a recital that the foregoing statements and answers constituted the application, and that they were complete and true and were the basis of the proposed contract for additional insurance. This statement or application was dated and signed August 5, 1933. No medical examination was required, but on August 9, 1933, Humphreys signed a document prepared by plaintiff headed "Health Certificate." It recited that "*** since the date of my last statements and or medical examination in connection with insurance on the life of Joseph R. Humphreys (hereinafter called the applicant) *** applicant has not undergone any medical or surgical treatment. ***"

Pursuant to Humphreys' application of August 5 and the health certificate of August 9, plaintiff delivered to him its policy No. 21437 for $1,000 dated August 5, 1933.

A year later this policy lapsed for nonpayment of premium, but on September 10, 1934, it was reinstated on Humphreys' application on the company's regular form, containing the following:

"I Hereby Certify that since the date of my last medical examination in connection with my insurance under this Policy *** I have not undergone any medical or surgical treatment. ***

"I Hereby Agree that the foregoing statements shall be the basis for reinstatement of the above Policy, that they shall constitute an addition to and a part of the application on which the Policy was issued, *** also that if at any time they shall be found to be untrue in any respect, *** [the company's liability] *** by reason of the payment of the above and any subsequent premiums on the Policy, shall be limited to the aggregate amount of such premiums less dividends. ***"

On June 3, 1935, Humphreys died. Plaintiff paid the $2,500 policy; but brought this action to cancel the one for $1,000, setting up the application for the insurance, the health certificate, and the application for reinstatement as exhibits.

Plaintiff alleged that the recitals of the health certificate and the application for reinstatement were false; that in 1929, which was nearly four years after he had procured his first insurance policy from plaintiff, he was afflicted with hyperacidity and ulcer of the stomach and had been subjected to a surgical operation for gastric ulcer.

Plaintiff also alleged that it was in reliance on Humphreys' written statements set out above that it issued the policy and reinstated it; that those statements...