Primerica Life Ins. Co. v. Skinner
| Decision Date | 21 April 1997 |
| Docket Number | No. 45A04-9607-CV-282,45A04-9607-CV-282 |
| Parties | PRIMERICA LIFE INSURANCE COMPANY, Appellant-Defendant, v. Deborah A. SKINNER, Appellee-Plaintiff. |
| Court | Indiana Appellate Court |
Appellant-Defendant, Primerica Life Insurance ("Primerica"), appeals an order denying its motion for summary judgment, granting summary judgment for Appellee-Plaintiff, Deborah Skinner ("Deborah"), and awarding Deborah the proceeds of a life insurance policy applied for by her brother Clinton Skinner, Jr. ("Clinton"). We reverse.
Primerica presents one issue for our review which we restate as whether material misrepresentations on an application for life insurance render the coverage void ab initio when the applicant dies prior to issuance of a policy or rejection of the application.
On April 1, 1993, Clinton applied for a $50,000.00 life insurance policy with an agent of Primerica. On the application, Clinton indicated that in the past ten years he had not been treated for or had any indication of alcohol abuse or drug use, that in the past five years he had not been treated for or had any indication of any disorder of the lungs or respiratory system, and that in the past three years he had not been a patient in a hospital, had any electrocardiogram or x-ray, or used tobacco. He named Deborah as beneficiary, paid the first premium of $18.81, and signed an Application Agreement and a Conditional Premium Receipt. The Conditional Premium Receipt read as follows, in part:
I/We understand and agree that no insurance will be in affect before a Policy is issued and delivered unless all Conditions set forth below are met. If all Conditions are met and my/our death occurs before the delivery date of the Policy, then there shall be coverage but only in accordance with the provisions of this receipt and any Policy provisions not in conflict with it.
CONDITIONS FOR COVERAGE--1) All information given by me/us in the application must be true and complete to the best of my/our knowledge and belief; 2) The Company must find the person(s) to be insured to be (a) standard risk(s) for the Policy applied for according to its underwriting rules; ...
EFFECTIVE DATE OF COVERAGE--Any coverage under this Receipt will become effective on the latest of the following: 1) Application Date; 2) Completion date for all tests and exams required by the Company in connection with the application; 3) Date the Company receives all other information requested.
(R. 240) (emphasis added).
Clinton died on April 11, 1993, before a policy was issued by Primerica. Deborah notified Primerica of Clinton's death. Primerica denied her claim, refunded the premium, and declared the policy void for material misrepresentations on the application. Deborah filed a complaint and, following discovery, both parties moved for summary judgment. The trial court entered an order finding, in part:
10. It is unnecessary to get to the issue of alleged inaccuracies in the insurance application.
11. The Plaintiff's Motion for Summary Judgment is hereby granted and Plaintiff is awarded a judgment in the amount of $50,000.00 plus statutory pre-judgment interest from June 28, 1993.
12. Defendant's Motion for Summary Judgment is hereby denied.
(R. 323). Primerica now appeals.
Upon review of the grant or denial of a summary judgment motion, we apply the same legal standard as the trial court: summary judgment is appropriate only when there are no genuine issues of material fact and the moving party is entitled to judgment as a matter of law. Ind.Trial Rule 56(C); North Snow Bay, Inc. v. Hamilton, 657 N.E.2d 420, 422 (Ind.Ct.App.1995). On review, we may not search the entire record to support the judgment, but may only consider that evidence which had been specifically designated to the trial court. Id. The party appealing the trial court's grant or denial of summary judgment has the burden of persuading this court that the trial court's decision was erroneous. Id. The construction of a written contract is a question of law for which summary judgment is particularly appropriate. Conrad v. Universal Fire & Casualty Ins. Co., 670 N.E.2d 936, 937 (Ind.Ct.App.1996), trans. pending.
Primerica argues that Clinton's application for life insurance contained numerous falsehoods which render it void according to the terms of the conditional receipt. 1 Primerica contends that the misrepresentations do not operate as a condition subsequent, but void the contract ab initio. "False representations concerning a material fact, which mislead, will void an insurance contract, just as any other contract, regardless of whether the misrepresentation was innocently made or made with a fraudulent intent." Curtis v. American Community Mut. Ins. Co., 610 N.E.2d 871, 874 (Ind.Ct.App.1993). "A representation is material if the fact omitted or misstated, if truly stated, might reasonably influence the insurer's decision whether to issue the policy or to charge a higher premium." Id. "However, whether the misrepresentation, intentional or innocent, was material is a question for the jury, unless the evidence is such that there can be no reasonable difference of opinion." Prudential Ins. Co. of America v. Winans, 263 Ind. 111, 115, 325 N.E.2d 204, 206 (1975). We conclude as a matter of law that there can be no reasonable difference of opinion that the uncontroverted facts establish a material misrepresentation by Clinton in his insurance application.
Deborah, however, argues that because Clinton died before Primerica acted upon the application, Primerica cannot rescind coverage.
Where ... a [conditional] receipt is issued by a life insurer and the...
To continue reading
Request your trial
-
Kimmel v. WESTERN RESERVE LIFE ASSUR. CO. OF OHIO
...precedent to coverage if the express terms of the receipt so provide, rendering the coverage void. Primerica Life Ins. Co. v. Skinner, 678 N.E.2d 1140, 1142-43 (Ind.Ct.App.1997) (addressing the confluence of the holding in Kaiser and the existing rule that material misrepresentations on a l......
-
Midwest Sec. Life Ins. Co. v. Stroup
...of material fact and the moving party is entitled to judgment as a matter of law. Ind. Trial Rule 56(C); Primerica Life Ins. Co. v. Skinner (1997) Ind.App., 678 N.E.2d 1140, 1142; General Casualty of Wis. v. Diversified Painting Service, Inc. (1992) Ind.App., 603 N.E.2d 1389, 1390. The part......
-
INS Investigations Bureau, Inc. v. Lee
...genuine issues of material fact exist and the moving party is entitled to judgment as a matter of law. Primerica Life Ins. Co. v. Skinner, 678 N.E.2d 1140 (Ind.Ct.App.1997). This court may not examine the entire record to support a judgment, but may consider only that evidence which was spe......
-
George v. Pekin Life Ins. Co.
...a fraudulent intent.’ “ Bennett v. CrownLife Ins. Co., 776 N.E.2d 1264, 1269 (Ind.Ct.App.2002) (quoting Primerica Life Ins. Co. v. Skinner, 678 N.E.2d 1140, 1142 (Ind.Ct.App.1997) ). A representation is material if the fact omitted or misstated, if truly stated, might reasonably have influe......