Union Life Insurance Co. v. Evans

• Decision Date: 15 February 1937
• Docket Number: 4-4528
• Parties: UNION LIFE INSURANCE COMPANY v. EVANS
• Court: Arkansas Supreme Court

101 S.W.2d 778

193 Ark. 627

UNION LIFE INSURANCE COMPANY v. EVANS

4-4528

Supreme Court of Arkansas

February 15, 1937

Appeal from Jefferson Circuit Court; T. G. Parham, Judge; affirmed.

Judgment affirmed.

Rowell Rowell & Dickey, for appellant.

Monk & McLeod, for appellee.

OPINION

BAKER, J.

Since a jury has determined the facts in this case, they may be stated as so determined most favorably to the appellee. There is substantial evidence to support the verdict. Standard Oil Co. v. Hydrick, 174 Ark. 813, 296 S.W. 708; Hall v. Jones, 129 Ark. 18, 195 S.W. 399; Arkansas Land & Lumber Co. v. Fitzhugh, 143 Ark. 122, 219 S.W. 1022; Mutual Benefit Health & Accident Ass'n v. Basham, 191 Ark. 679, 87 S.W.2d 583.

Cal Frazier, an old negro, who lived near Pine Bluff, Arkansas and who was about seventy-five years of age, made application for insurance with the appellant. Policy was in the sum of $ 200 and the insurance was payable to Sadie Evans, a foster-daughter, who lived in Pine Bluff.

The insurance agent who wrote this policy had known Frazier for several years. When asked how old he was, he stated that he did not know. He was only questioned concerning his age and his health. He was not able to read or write and appellee was asked to sign his name to the application. He did not know what the agent had written into the application. It was not read to him. Some time later, the exact date is immaterial he was approached and asked to take out a second policy and he advised on that occasion that he was too old; that he was more than seventy. The agent of the insurance company advised him that that made no difference, that that could be arranged satisfactorily. The second policy was issued. Both of these policies were delivered to Sadie Evans.

These policies are what are generally termed as non-medical policies, that is to say there was no physical examination. Whatever answers were made have not been treated as warranties.

Some months after the last insurance policy was issued Frazier died. The insurance company refused payment, but acknowledged liability under one provision of the policy to the effect that if the insured was over the age of sixty that the company's liability would be limited to a return of the premiums. The policies being in full force and effect, except as affected by the age limit, the company offered a return of the premiums. Appellee refused the offer. A suit was filed upon one of the policies in municipal court.

Upon judgment having been rendered there in favor of the beneficiary, an appeal was prayed to the circuit court where a suit was filed upon the other policy and the two cases were then consolidated for trial. Upon trial, judgment was rendered for the beneficiary upon both policies and an appeal has been duly prayed to this court.

Upon this appeal only two real issues are presented, though one or two other matters were argued incidentally for our consideration. The first issue is that Cal Frazier was over age; that there is no liability in excess of the premiums paid by him. The second is that Sadie Evans is not his daughter, and, therefore, had no insurable interest in his life.

The foregoing statement for the purpose of our discussion will be treated as substantially correct without quoting from the testimony of witnesses or going into minute detail or stating other facts, except as they may be incidental to any issues as they are considered.

According to the statement presented by appellants there was only one occasion on which Frazier made a definite statement in regard to his age and that was the time of the application for the second policy. The agent of the insurance company says that at the time of the first application they figured out what his age was and it is certain that the agent wrote into the application the month, the day thereof, and the year, so as to show Frazier to be fifty-five years of age. It was only a short time later that the second application was signed and this at the instance of the insurance agent who was advised on that occasion by Frazier himself that he was more than seventy years of age. It now appears certain that he was more than seventy-five years of age and, notwithstanding this information, that the agent wrote into this second application the same date that was written into the first, giving the day of the month, the month, and year of birth, showing Frazier to have been 55 years of age. It might be remarked incidentally that after these policies were issued an inspector of the company visited Frazier, presumably, as we gather from this record, to determine the fact of his insurability. He duly approved Frazier for insurance.

From the foregoing facts it must be apparent that there was no fraud or collusion of any kind as between Frazier and any representative of the insurance company in regard to the age stated in the application. When the policies were delivered it was further stated by the insurance company's agent that the policies were good for $ 200 each and they were left, according to directions, with Sadie Evans. It is not shown that she ever read the policies, but it is shown that Cal Frazier could not have read them had they been delivered to him, nor is there any information that he ever at any time, knew that there was a false statement in the application in regard to his age.

It is argued with considerable force that Frazier misrepresented his age, that had he made a true statement in regard thereto the policies would not have been issued. The facts have been determined contrary to this contention. Agents of the insurance corporation employed to solicit applications acting wholly within the scope of their authority with full power to bind the principal in that regard, wrote these applications for insurance. At least two, possibly, three or more of the company's agents saw Frazier on several occasions before and immediately after this insurance was in force. At least two of them knew that he made no misrepresentation, statement or warranty in regard to his age, except that he was more than...