Union Cent. Life Ins. Co. v. Barnes

• Decision Date: 01 May 1917
• Citation: 194 S.W. 339,175 Ky. 364
• Parties: UNION CENT. LIFE INS. CO. v. BARNES.
• Court: Kentucky Court of Appeals

194 S.W. 339

175 Ky. 364

UNION CENT. LIFE INS. CO. v. BARNES.

Court of Appeals of Kentucky.

May 1, 1917

Appeal from Circuit Court, Franklin County.

Action by Jennie F. Barnes against the Union Central Life Insurance Company. Judgment for plaintiff, and defendant appeals. Reversed.

T. L Edelen, of Frankfort, for appellant.

O'Rear & Williams, of Frankfort, and Geo. Batterton, of Paris, for appellee.

CLARKE J.

In 1904, Clifton J. Barnes, then a resident of Virginia, applied for, and had issued to him by appellant, a policy of insurance for $5,000, payable to his wife, the appellee Jennie F. Barnes. The policy contains the provision that it shall be held and considered to have been made in the city of Cincinnati, Ohio; but whether made in Ohio or Virginia is immaterial here, since it is agreed that under the laws of both Ohio and Virginia a stipulation in a contract for a period of limitation different from that fixed by the statute of limitations is valid and enforceable.

The policy under consideration contained a stipulation that no action could be maintained thereon after one year from the date of the death of the insured. The statutory period of limitation for actions upon such a contract is, by the laws of this state, fixed at 15 years. After the execution and delivery of the policy to Barnes, he and his wife moved from Virginia to Kentucky, and were residents and citizens of this state when Mr. Barnes died, in August, 1911. More than one year after the death of the insured, Mrs. Barnes, named as beneficiary in the policy, on March 20, 1914, instituted this action in the Franklin circuit court to recover the amount of the policy. The company denied liability and resisted payment upon two grounds: First, that, the action not having been brought within the stipulated one year after the death of the insured, her cause of action was barred; second, that, for the nonpayment of premiums, the contract had lapsed before the death of the insured. A demurrer was sustained to both of these defenses, and, the company declining to plead further judgment was rendered against it in favor of appellee, for the amount of the policy, with interest and costs.

Our conclusion upon the validity of the stipulated period of limitation will render unnecessary a discussion of the question whether or not the policy had lapsed for nonpayment of premiums.

In the case of Union Central Life Ins. Co. v. Spinks, 119 Ky. 261, 83 S.W. 615, 84 S.W. 1160, 26 Ky. Law Rep. 1205, 27 Ky. Law Rep. 453, 69 L. R. A. 264, 7 Ann. Cas. 912, which counsel for appellant insists is unsound and against the great weight of authority, this court, upon a careful consideration of the question, held that a provision in a life insurance policy, made and to be performed in this state, to the effect that no suit could be maintained thereon unless begun within one year from the death of the insured was void, as in contravention of the public policy of this state, overruling various cases in which a contrary position was assumed.

Although criticizing the opinion...