Teeter v. United Life Ins. Ass'n

• Decision Date: 06 June 1899
• Citation: 159 N.Y. 411,54 N.E. 72
• Parties: TEETER v. UNITED LIFE INS. ASS'N.
• Court: New York Court of Appeals Court of Appeals

159 N.Y. 411

54 N.E. 72

TEETER

v.UNITED LIFE INS. ASS'N.

Court of Appeals of New York.

June 6, 1899.

Appeal from supreme court, appellate division, Third department.

Action by Martha E. Teeter against the United Life Insurance Association to recover on a policy of insurance. From a judgment for plaintiff, affirmed by the appellate division (42 N. Y. Supp. 119), defendant appeals. Affirmed.

John T. McDonough, for appellant.

D. W. Van Hoesen, for respondent.

PARKER, C. J.

April 4, 1887, William W. Teeter, of Ithaca, made application to the defendant for a policy of life insurance, and was on that day examined by the defendant's local examining physician. The day following, the policy was issued and delivered to Teeter, his wife (this plaintiff) being named therein as beneficiary. The provisions thereof that are involved in this review are as follows: ‘Conditions. * * * (5) A failure to comply with the rules of said association as to payment of assessments shall also render this policy void. Rules. * * * (2) Upon the death of any member, the member above insured shall pay, if required, to the secretary of the association, an assessment of $4.90. (3) * * * A notice shall be sent, announcing each assessment, and the number thereof, to the last post-office address given to the association by each member, and, if the assessment is not received within thirty days from the mailing of said notice, it shall be accepted and taken as sufficient evidence that the party has decided to terminate his connection with the association, which connection shall thereupon terminate, and the party's contract with the association shall lapse and be void; but for valid reasons (such as failure to receive notice of an assessment) the officer of the association may reinstate such party, after medical examination and approval, upon payment of assessment arrearages. And the said association does hereby further promise and agree that, after two years from the date hereof, the only considerations that shall be binding upon the holder of this policy are that he shall pay the annual dues and assessments at the times and places and in the manner hereinafter stipulated, and that the regulations of the association as to occupation and employment shall be observed, and that in all other respects, if this policy matures after the expiration of said two years, this policy shall be indisputable.’ Teeter continued to pay his assessments promptly until the assessment of July 15, 1889, which was, by the terms of the policy, payable to the company's office on or before the 14th day of August following. On August 11th Teeter turned over the amount of his assessment to Dr. Baker, the defendant's local examining physician, to be sent with Dr. Baker's assessment. By some oversight, Dr. Baker omitted to send the assessment until the 15th day of August, when he mailed a check to the company, and advised it that such check was for his own and Teeter's assessments. The company received Dr. Baker's check on the 16th, and, instead of promptly returning the money, retained it, and on the same day addressed to Teeter a letter acknowledging the receipt of the moneys to pay the assessments, but asserted that Teeter was a delinquent, in that the remittance had come two days after it was due, and advised him that, before it could give him credit for the assessment, he should sign and return what it termed a ‘health certificate,’ which it inclosed, on receipt of which it would forward the proper voucher for his remittance. Teeter was away from home at the time this letter reached Ithaca, but upon his return he promptly signed the health certificate and forwarded it to the defendant. By it he certified that he was then in good health, and that the answers given and representations made in his application for the insurance were substantially true, and were applicable to his then condition, except as to his age. Teeter was then reinstated upon the books of the defendant, and thereafter continued to pay his assessments until his death, which occurred some four years and eight...