Prudential Ins. Co. of America v. Lawnsdail
| Decision Date | 17 October 1944 |
| Docket Number | 46498. |
| Citation | 15 N.W.2d 880,235 Iowa 125 |
| Parties | PRUDENTIAL INS. CO. OF AMERICA v. LAWNSDAIL. |
| Court | Iowa Supreme Court |
Gamble, Read, Howland & Rosenfeld, of Des Moines, for appellant.
Henry & Henry, of Des Moines, for appellee.
Margaret C Lawnsdail, appellant, was beneficiary in a $1200 policy insuring the life of her husband, Orville F. Lawnsdail issued August 1, 1940 by appellee, The Prudential Insurance Company of America. The policy provided for double indemnity for accidental death. It was issued without medical examination. Premiums were payable quarterly.
June 23 1941, Mr. Lawnsdail was accidently drowned while fishing. September 19, 1941, appellee refused payment of said policy and in July, 1942, brought this action to cancel the same alleging it was procured by false statements in the application, with reference to prior illnesses, hospital confinement and medical treatment. The answer was a general denial, coupled with allegations that plaintiff's agent prepared the application, procured the signature of Mr. Lawnsdail thereto and thereafter inserted therein the statements in question upon his own information, without being in any way deceived by any statements of Mr. Lawnsdail. Appellant by counterclaim sought to recover upon the policy.
Appellant practically concedes that various answers to material inquiries in the application were false and if made by Lawnsdail were knowingly false. For several years Lawnsdail had suffered from fainting spells or epilepsy and had been treated by various doctors and in several hospitals. The principal issue of fact is whether the false answers were made by Lawnsdail or by appellee's agent, entirely on his own motion and without directing the inquiry to Lawnsdail.
The application was in two parts, upon separate sheets of paper, each to be signed by the applicant. The questions in Part 1 called for the applicant's name, age, occupation, other insurance, description of the policy and the beneficiary. This part of the application is here involved only incidentally. Part 2 of the application contained the questions concerning the applicant's habits, size and weight, family history and medical and health history. The questions and false answers in controversy in this case were in this part of the application.
Orville Lawnsdail was by occupation a baker. He had carried policies with appellee, issued in 1926, 1930, 1932 and 1935, and in 1940 had policies upon which premiums were payable weekly. He was 25 years of age.
John Hanson was assistant superintendent of appellee's Des Moines agency. He had known Orville Lawnsdail since the latter was a boy of 12, and during the intervening years had frequently collected insurance premiums from Lawnsdail. Lawnsdail was formerly an athlete and Hanson had many times watched him play football. Hanson testified that in 1940 Lawnsdail was a big, husky looking chap who appeared to be in perfect condition and that he knew Lawnsdail didn't drink. It is evident that, based upon his long acquaintance with Lawnsdail, the latter's insurance record as known to Hanson and Lawnsdail's appearance, Hanson considered him a good insurance risk.
Lawnsdail lived in West Des Moines. On July 15, 1940 the regular agent for that territory was absent and Hanson was handling his premium collections. In the course of this work he called at the Lawnsdail home. The husband and wife were present.
After making the collection Hanson said, 'Orville, I think it is time you should carry more insurance * * *.' The Lawnsdails hesitated, doubting that they could afford it. However, after some persuasion by Hanson they said they would take another policy. Hanson took out his papers, started questioning Lawnsdail and wrote the answers on the papers. Lawnsdail sat across the table. The questions contained in Part 1 were asked and the answers were placed therein by Hanson. Hanson also wrote Lawnsdail's answers to questions concerning Lawnsdail's weight and physical measurements, and the ages, etc. of his parents, brothers and sisters. It may be here noted that these questions were contained in part 2 of the application. Hanson testified none of the other questions in part 2 were asked by him at that time.
Mrs. Lawnsdail testified that after a few minutes of questioning Hanson said, 'Now, Orville, we won't ask you these questions because I feel that I know you well enough, having known you long enough, that I can answer these questions, myself and we won't take the time because * * * I am in a hurry * * * Here, Orville, you can just sign your name here,' and Orville signed.
She testified that she was unable to say how many times Lawnsdail signed the papers; that Hanson said the policy would be delivered to them later, that he said nothing about not having any papers he needed to complete the application or that he would return later, that as far as she knew Hanson did not return later. She also testified that when the policy was received it was filed with other policies and was not opened or examined.
Part 1 of the application signed by Lawnsdail was dated July 15, 1940. Part 2 was likewise dated July 15, 1940. Appellant contends Parts 1 and 2 were signed by Lawnsdail at the same time, that the only answers then in part 2 were those giving Lawnsdail's weight and measurements and the ages, etc., of members of his family and that thereafter Hanson, on his own motion, inserted answers to the other questions.
Hanson testified Part 2 was made the following day. He testified he did not have part 2 of the application with him on July 15 that it was in his automobile which was parked several blocks distant from the Lawnsdail home, that he told the Lawnsdails he didn't have the other form and would call later and have it signed, that the next evening he drove out to the Lawnsdail home and met Mr. Lawnsdail alone in front of the house and that Hanson filled out and...
To continue reading
Request your trial