Paulhamus v. Security Life & Annuity Co.

• Decision Date: 16 July 1908
• Docket Number: 81-1907.
• Citation: 163 F. 554
• Parties: PAULHAMUS v. SECURITY LIFE & ANNUITY CO.
• Court: U.S. District Court — Middle District of Pennsylvania

163 F. 554

PAULHAMUS v. SECURITY LIFE & ANNUITY CO.

No. 81-1907.

United States Circuit Court, M.D. Pennsylvania.

July 16, 1908

At the trial the court submitted certain questions, which were answered by the jury as follows:

1) When C. E. Paulhamus, in applying for the policy of insurance in suit, stated that his former occupation had been that of a painter and paper hanger, and that his present occupation was that of real estate and insurance, no other statement being made as to any other present occupation--

(a) Was that a full, complete, and true answer? Answer: Yes.

(b) Was it material to the risk that he should answer truthfully as to such occupation? Answer: No.

(c) Did he answer as he did in good faith? Answer: Yes.

(2) Was the undescended testicle, for which C. E. Paulhamus was operated upon in November, 1899, in a cancerous condition? Answer: No.

3) The said C. E. Paulhamus, in reply to the question: 'Have you ever had any serious illness or disease, except diseases incident to childhood? If so, give particulars'-- having answered, 'Yes, operation five years ago for hernia,' and also to the questions put by the company's medical examiner: 'How long since were you attended by a physician or professionally consulted one? For what disease? Give full particulars as to date, duration, severity, etc of each disease you have had. Give the name and residence of attending physician'--having answered: '(A) Five years. (B) Surgical case. Operation for undescended testicle. (C) Dr. G. D. Nutt, Williamsport, Pa. (D) Dr. J. W. Van Horn Montoursville, Pa.'--

(a) Did he, in so answering, make full, complete, and true answers with regard thereto? Answer: Yes.

(b) Were the answers that he so gave full, complete, and true, so far as he had information or knowledge? Answer: Yes.

(c) Did he answer in good faith? Answer: Yes.

(d) Was it material to the risk that he should answer truthfully in the premises? Answer: Yes.

4) When C. E. Paulhamus, in applying for the insurance policy in suit, in reply to the question put by the company's medical examiner: 'Have you hernia, or have you ever been ruptured? If so, do you now wear a suitable truss?'--answered, 'No'--

(a) Was this true? Answer: No. (b) Did he so answer in good faith? Answer: Yes. (c) Was this a matter material to the risk? Answer: Yes.

5) When C. E. Paulhamus, in applying for the insurance policy in suit, in reply to the questions put by the company's medical examiner: 'Have you ever had cancer, or any tumor, enlarged glands, or abscesses,' answered 'None'--

(a) Was that a true answer? Answer: No.

(b) Did he so answer in good faith? Answer: Yes.

(c) Was it something material to the risk? Answer: Yes.

6) When C. E. Paulhamus, in applying for the insurance policy in suit, in reply to the question put by the company's medical examiner: 'Have you had any illness, disease, or injury, other than as stated by you above? If so, state full particulars'-- made answer, 'None, except mild diseases of childhood'--

(a) Was that true? Answer: No.

(b) Did he answer in good faith? Answer: Yes.

(c) Was that a matter material to the risk? Answer: Yes.

7) When C. E. Paulhamus, in applying for the insurance policy in suit, in reply to the question put by the company's medical examiner: 'Have you, or any of your family or relatives, ever been under treatment at any hospital, asylum cure, or sanitarium?'-- answered, 'No'--

(a) Was that true? Answer: No.

(b) Did he so answer in good faith? Answer: Yes.

(c) Was that a matter material to the risk? Answer: Yes.

The jury thereupon, at the suggestion of the court, returned the following special verdict:

We, the jurors impaneled in this case, do find the following to be the facts, and make return thereof, and of the answers which we have made to certain questions submitted by the court which together herewith are to constitute a special verdict:

(1) The plaintiff, Harriet C. Paulhamus, is the widow of Cameron E. Paulhamus, deceased, and the beneficiary named in a policy of insurance taken out by the said C. E. Paulhamus in the Security Life & Annuity Company of America, defendant, on December 16, 1905, for the sum of $3,000, a copy of which is attached to the plaintiff's statement and made a part hereof.

(2) There was duly paid to the said company by the said C. E. Paulhamus the sum of $92.31 on account of the first premium due on said policy, which, with the 25 per cent. advanced by the company at his request under the provisions of the policy, paid the first premium due thereon in full.

(3) The said C. E. Paulhamus departed this life August 24, 1906, within the first year after the date of said policy, as the result of a surgical operation for a tumor, from loss of blood or shock. Due notice of the loss was given to the said company, and proofs of death were made in accordance with the requirements of the policy, which proofs were received by the company September 5, 1906.

(4) Indorsed on the back of the said policy is the following:

'Application.

'I hereby apply to the Security Life & Annuity Company of America for a policy of $3,000 on my life, upon the 20 Pay A.D. plan. Amt. annual premium, $123.06.

1.-- My full name is Cameron Else Paulhamus, and I reside at No. West Broad St., in the city of Montoursville, county of Lycoming, state of Pennsylvania.

2.-- My former residence was Williamsport, Pa. My former occupation has been Painter & Paper hanger. My present occupation or business is (state specifically the kind of business) Real Estate & Ins. My other occupations are . . . .

3.-- My place of business is W. Broad St., and my P.O. address is Montoursville, Pa.

4.-- I was born on the 21st day of July, 1869, in Montoursville, Pa.; age (nearest birthday) 36.

5.-- The full name of the beneficiary to whom the insurance is to be payable is Harriet Champion Paulhamus, residing in Montoursville, Pa.

6.-- The relationship of the beneficiary to me (the person proposed for insurance) is wife.

7.-- The age of the beneficiary (nearest birthday) is 34.

8.-- The insurable interest, if other than a relative, is . . ..

9.-- The premium on this contract is to be $123.06, payable annually in advance; and the policy is to be issued on the advance dividend plan, under which the company agrees to advance for me, against the policy contract, 25% of each premium during the advance dividend period of twenty years, which advances are to bear interest at 3 1/2% annually compounded, until paid by the application of dividends or otherwise. The contract is to contain a guarantee to cancel these advances and interest in the event of my death during the advance dividend period.

1 10.-- I am now insured for $ . . . in the following companies or associations, to wit: . . . .

1 11.-- Have you ever (a) been declined or postponed by any life insurance company, or received a policy different in form from the one originally applied for; or (b) been intemperate; or (c) had any serious illness or disease, except diseases incident to childhood? If so, give particulars. (d) Is there any history of insanity or consumption in your family, i.e., among parents, brothers or sisters, uncles or aunts? If so, give particulars. (a) No. (b) No. (c) Yes.

Operation 5 years ago for hernia. (d) No.

'I have paid $92.31 to the undersigned soliciting agent, and have been furnished with his receipt for the same to make the insurance herein applied for binding from the date of approval by the company's medical director.

'I hereby agree that, if I have made an error in the statement of my age as given above, the company may adjust the insurance so as to conform to my true age, either by an increase in premium or proportionate reduction in the amount of insurance.

'I hereby agree that, if any premiums on said insurance be not duly paid, all previous payments shall be forfeited, except as provided in the company's contract.

'I hereby agree that, in case the premiums are not paid annually in advance, the unpaid portion of each annual premium shall be a lien on the contract and on any renewal thereof.

'I hereby agree that active service in the army or navy in time of war shall invalidate the insurance, unless a permit for such service shall have been applied for and granted by the company, and the extra premium paid on notifications; and it is agreed that at any time within one year after the date of the issue of the contract travel and residence in the torrid zone, and engagements in any of the following occupations or employments: Handling electric wires or dynamos, blasting, mining, submarine labor, aeronautic ascensions, the manufacture, handling, or transportation of inflammable or explosive substances, or services in any switching or coupling of cars-- will render the contract, and any and all renewals thereof, void; and that self-destruction, sane or insane, and death in consequence of violation of law, within the above period, are not risks assumed by the company under this contract.

'I further agree that in any distribution of surplus the principles and methods which may then be in use by the company for such distribution, and its determination of the amount equitably accruing to this contract, shall be and are hereby ratified and accepted by and for every person who shall have or claim any interest in this contract.

'It is hereby agreed that all the foregoing statements and answers, and also those I make to the company's medical examiner, are warranted to be full, complete, and true, and are offered to the company as a consideration for the contract, which shall not take effect until this application has been accepted by the company, at the executive office in Philadelphia, Pa., and the first premium shall...