Prudential Ins. Co. of America v. Fuqua's Adm'r

• Decision Date: 28 November 1950
• Citation: 314 Ky. 166,22 A.L.R.2d 803,234 S.W.2d 666
• Parties: , 22 A.L.R.2d 803 PRUDENTIAL INS. CO. OF AMERICA v. FUQUA'S ADM'R.
• Court: United States State Supreme Court — District of Kentucky

Page 666

234 S.W.2d 666

314 Ky. 166, 22 A.L.R.2d 803

PRUDENTIAL INS. CO. OF AMERICA v. FUQUA'S ADM'R.

Court of Appeals of Kentucky.

Nov. 28, 1950.

Wheeler & Marshall, Paducah, for appellant.

Earle T. Shoup, W. Pelham McMurry, Paducah, for appellee.

VAN SANT, Commissioner.

The case was submitted to the Chancellor of the McCracken Circuit Court on the law and facts. Since the evidence supports his finding of facts, we will adopt his statement of the case.

'On or about June 4, 1930, Mrs. Christine Fuqua, wife of the plaintiff, R. E. Fuqua, and mother of the decedent, Billie Fuqua, signed and delivered to L. B. McGarvey, an agent of the defendant, an application for the issuance of a policy of insurance on the life of the said decedent. The said application contained the following questions and answers:

                Question  '11. Is life proposed now insured in this Company? If so
                            state numbers, kinds and amounts of policies. If
                            infantile, state kind and premiums
                Answer    'Numbers                                                         Kind
                          ----------------------------------------------------------  ---------
                          69687848                                                         C.E
                                                                                      (Premium)
                                                                                             25
                                                                                         cents'
                Question  '14. Is life proposed now insured in any other company? If
                            so, for what amount? If infantile, state kind and
                            premium
                Answer    'None
                

'Although Mrs. Fuqua signed the application, she did not fill in the blanks on the application, that being done by the defendant's agent, the said McGarvey. She did not read the application after the blanks had been so filled in, and the said agent, at the time he filled in said blanks, did not ask Mrs. Fuqua any question relating to the existence of other insurance on the life of Billie Fuqua.

'At the time said application was signed by Mrs. Fuqua, two other policies of insurance were in force on the life of the said decedent, Billie Fuqua, to-wit:

'Policy No. 69 687 848 in the amount of $295.00 issued by the defendant, The Prudential Insurance Company of America, on February 28, 1927. Policy No. 4,709,067 in the amount of $1,000.00 issued by The American National Insurance Company on April 4, 1927.

'The said application was duly accepted by the defendant, and on June 9, 1930, it issued a policy of insurance on the life of the said Billie Fuqua, the same bearing number 82,472,507, and calling for the payment of the following amounts to the executors or administrators of the insured at the expiration of the periods specified:

                In Force            Amount Payable at Death
                ------------------  -----------------------
                Less than one year                  $300.00
                  One year                           370.00
                  Two years                          440.00
                  Three years                        500.00
                

'All premiums on said policy were paid as they became due until the death of Billie Fuqua, which occurred on August 17, 1937, whereupon no further premiums became payable.

'After the death of Billie Fuqua, and after the appointment and qualification of the plaintiff as Administrator of his estate, as aforesaid, the plaintiff notified the defendant of such death and demanded payment of the proceeds of said policy, which notice and demand were timely given and made. The defendant refused to make such payment, declared the said policy void by reason of the existence of an excessive amount of insurance on the life of Billie Fuqua, and tendered the premiums previously paid, plus interest at the rate of three and one-half (3 1/2) per cent per annum, in full settlement of its obligations under said policy. Plaintiff refused to accept such tender, and thereafter he instituted this suit to recover the sum of Five Hundred ($500.00) Dollars, plus interest at the rate of Six (6) per cent per annum from the date of the death of Billie Fuqua, August 17, 1937.

'The said policy issued by the defendant, number 82,472,507, contained the following provision:

"Maximum Amount of Insurance.--If the Insured be already insured under any policy or policies issued by this or any other company, and if the amount of insurance payable at the death of the Insured under such policy or policies be less than the limit of insurance fixed by the following table, but when added to the insurance payable under this Police shall exceed the said limit, the amount payable under this Policy shall not exceed the difference between the amount specified in the said table of limitations and the total amount of insurance payable under such policy or policies already in force on the life of the Insured, but if the amount of insurance payable at the death of the Insured under such policy or policies already in force be equal to or shall exceed the said limit of insurance, this Policy shall be void, except as provided below:

                -------------------------------------------------------------------------------
                    Limit of Insurance at Age Next Birthday at Time of Death Limit Between
                -------------------------------------------------------------------------------
                 1    2    3    4    5    6    7    8    9    10   11   12   13   14   Ages 14
                                                                                        and 14
                                                                                         1/2
                -------------------------------------------------------------------------------
                $100 $200 $300 $400 $500 $600 $700 $800 $900 $10- $11- $12- $13- $14-   $1500
                                                               00   00   00   00   00
                -------------------------------------------------------------------------------
                

"Should the amount otherwise payable under this Policy be reduced as hereinbefore provided, the Company will return the total premiums paid upon the amount of such reduction, together with three and one-half per cent. per annum compound interest.'

'The said policy also contained the following provision:

"Policy When Void.--If at the time of the issuance of this Policy there be in force upon the life of the Insured hereunder an Industrial policy or policies issued by this Company,...