Stanback v. Winston Mut. Life Ins. Co.

• Decision Date: 10 December 1941
• Docket Number: 601.
• Citation: 17 S.E.2d 666,220 N.C. 494
• Parties: STANBACK v. WINSTON MUT. LIFE INS. CO.
• Court: North Carolina Supreme Court

17 S.E.2d 666

220 N.C. 494

STANBACK v. WINSTON MUT. LIFE INS. CO.

No. 601.

Supreme Court of North Carolina

December 10, 1941

The rules of punctuation may be used to assist in determining the intent of the parties, but punctuation or absence of punctuation in a contract, such as a life policy, is ineffective to control its construction as against the plain meaning of the instrument.

Civil action to recover on policy of life insurance.

The parties having agreed in the court below that the trial judge should hear the case, find the facts and state conclusions of law, "without the intervention of a jury", these facts are presented.

(1) On 30 September, 1940, defendant Winston Mutual Life Insurance Company issued to Sandy Stanback, the insured, 27 years of age at his next birthday, its policy of life insurance No. 29298, effective at noon on said date, and in which his mother, Cora Stanback, plaintiff herein, is beneficiary. In the policy the Insurance Company agreed "subject to the terms and conditions below and in the following pages hereof, each of which is hereby made a part of this contract and binding on every person entitled to claim hereunder, to pay *** the amount stipulated in the schedule below, except as is otherwise provided on this and the following pages, to the beneficiary *** of the insured ***".

The schedule above referred to relates, first, to "insurance if the insured is ten years of age or over", in which event the "ultimate amount of insurance" is stated to be $300.00"; and, second, to "amount of insurance if the insured is under ten years of age". Then, after provisions not pertinent here, these paragraphs follow:

"Preliminary Provision: If, after this policy takes effect, death should occur during the first six months and the insured is ten years of age next birthday or over, no greater amount than one-half of the insurance provided herein shall be paid as a death benefit; if the age of the insured at date of this policy is less than ten years next birthday, the amount payable will be according to the Infantile Table above except as is provided on the following pages.

"The conditions, privileges, benefits and the concessions to policy holders, and any endorsement either printed or written as made by the Company on any of the following pages are a part of this contract as fully as if recited over the signature hereto affixed".

Then on the next page, entitled "Privileges and Conditions", is this paragraph: "4. Limitations. If the death of the Insured occurs during the first twelve months from date of this policy resulting directly or indirectly from *** pneumonia, *** (naming other diseases not pertinent here), one-fourth of the amount will be paid which would be payable under the policy conditions for death resulting from any other natural cause, unless settlement be made under paragraph (a) below; or if the death of the Insured occurs during the first nine months from date of this policy, resulting from pregnancy, childbirth or miscarriage if legally married, one-fourth of the amount will be paid which would be payable under the policy conditions for death resulting from any other natural cause. In the case of death of the Insured, resulting directly or indirectly from injury sustained while in the act of violating any Federal, State or Municipal law, or as a punishment therefor, or the culpable or intentional act or negligence of the Insured or Beneficiary hereunder, the liability of this Company shall be limited to an amount not in excess of premiums paid hereon. Military and naval service or any occupation incident thereto in time of war is a risk not assumed under this policy, and if the Insured shall enter or be engaged in any military or naval service or any occupation incident thereto in time of war, and shall die while engaged in or as a result of such service, the liability of the Company under this policy shall be limited to the amount of the full legal reserve to the credit of this policy or to one-fifth of the amount payable hereunder, whichever amount is the greater, unless the Insured shall, within one calendar month from entering upon such service, secure a written permit therefor, to be signed by the President Vice-President, or Secretary of the Company. An extra premium shall be charged for such permit to be fixed by the Company. Self-destruction within two years from the date hereof whether the Insured be sane or insane, is not a risk assumed by the Company but in such event the Company will return the premiums actually paid hereon. (a) If the Insured, within two years prior to the date of this policy, has been rejected for insurance by this or any other company, order, or association or has been affected by any complaint or condition necessitating the attention of a physician, or had, during said period, any pulmonary disease, chronic bronchitis, pneumonia, cancer, disease of the heart, blood vessels, liver, or kidney, and death should occur within two years from date hereof the maximum liability of the Company will not exceed the premiums paid, unless reference to such rejection, or medical attention or treatment, or complaint or condition, or...