Rhyne v. Jefferson Standard Life Ins. Co.

• Decision Date: 13 March 1929
• Docket Number: 490.
• Citation: Rhyne v. Jefferson Standard Life Ins. Co., 196 N. C. 717, 147 S. E. 6 (N.C. 1929)
• Parties: RHYNE v. JEFFERSON STANDARD LIFE INS. CO.
• Court: North Carolina Supreme Court

147 S.E. 6

196 N.C. 717

RHYNE v. JEFFERSON STANDARD LIFE INS. CO.

No. 490.

Supreme Court of North Carolina

March 13, 1929

Appeal from Superior Court, Burke County; T. B. Finley, Judge.

Civil action by Brent Rhyne, as guardian of R. H. Rhyne, an insane person, against the Jefferson Standard Life Insurance Company.Judgment for defendant, and plaintiff appeals.Reversed.

Unless clearly negatived stipulation requiring notice to insurer of total disability will not cause forfeiture, when insured becomes totally incapacitated.

Civil action by plaintiff, guardian of R. H. Rhyne, an insane person, to recover under the permanent disability clauses of two insurance policies.

On February 20, 1926, the defendant issued to Robert H. Rhyne a life insurance policy in the sum of $5,000, and again on December 15, 1926, the defendant issued another policy to the said Robert H. Rhyne in the sum of $2,500.The first of said policies provides for the "waiver of all future premiums and monthly payments for life of $50.00" in case of total and permanent disability, if, after payment of the first and before default in the payment of any subsequent premium, "the insured shall furnish to the company due proof that he has been wholly and continuously disabled by bodily injuries or disease and will be permanently continuously and wholly prevented thereby from pursuing any occupation whatsoever for remuneration or profit."The second of said policies provides for the "waiver of all future premiums and monthly payments for life of $25.00," if, while the policy is in force and before default in the payment of any premium "the insured shall furnish to the company due proof that he has become totally disabled by bodily injuries or disease," etc.

The premiums due on the first policy were paid up to March 20 1927, including the 30-day period of grace, and the premiums due on the second policy were paid up to May 15, 1927.No further premiums were paid on said policies after the respective dates above mentioned, and it is the contention of the defendant that both of said policies lapsed for nonpayment of premiums on the respective dates aforesaid.

On August 19, 1927, the assured was committed to the State Hospital for the Insane at Morganton, where he still remains.Plaintiff qualified as his guardian September 29, 1927.There was evidence from which the jury could find that the assured became insane in January or February, 1927, during the life of the policies in suit.Plaintiff brings this action to recover, for the benefit of the assured, the life annuities provided for under the total and permanent disability clauses contained in said policies.

It being admitted that proofs of total and permanent disability were not furnished to the insurance company prior to March 20, 1927, or May 15, 1927, judgment of nonsuit was entered on motion of the defendant.

Plaintiff appeals, assigning errors.

Avery & Patton and Spainhour & Mull, all of Morganton, for appellant.

Brooks Parker, Smith & Wharton, of Greensboro, and S. J. Ervin and S. J. Ervin, Jr., both of Morganton, for appellee.

STACY C.J.(after stating the facts as above).

The appeal presents the single question as to whether total disability or insanity, which renders an assured...