Voorheis v. People's Mut. Ben. Soc. of Elkhart

• Decision Date: 06 May 1892
• Citation: 91 Mich. 469,51 N.W. 1109
• Parties: VOORHEIS v. PEOPLE'S MUT. BEN. SOC. OF ELKHART.
• Court: Michigan Supreme Court

51 N.W. 1109

91 Mich. 469

VOORHEIS v. PEOPLE'S MUT. BEN. SOC. OF ELKHART.

Supreme Court of Michigan

May 6, 1892

Error to circuit court, Kalamazoo county; GEORGE M. BUCK, Judge.

Suit by Nancy M. Voorheis against the People's Mutual Benefit Society of Elkhart, Ind. From a judgment for plaintiff defendant brings error. Affirmed.

George H. Southworth and R. S. Lockton, for appellant.

Osborn & Mills, for appellee.

LONG J.

This action was brought upon a life insurance policy issued by the defendant company upon the life of Mary Kelly, now deceased. The plaintiff and Hattie Cook, the daughters of Mary Kelly, are the beneficiaries named in the policy. Hattie Cook assigned her interest in the policy to the plaintiff. The benefit certificate issued by the company bears date July 10, 1888, and on June 5, 1889, Mary Kelly died. June 10, 1889, notice of her death was forwarded and received by the defendant company. These proofs were returned as incomplete June 12th, and completed proofs were furnished July 30th following. On September 9, 1889, defendant notified plaintiff's agent that it would contest its liability and continued negotiating with the parties until October 1, 1889, when it caused a letter to be written offering to pay $42, by way of compromise, and stated that the company had become reasonably well satisfied that the plaintiff and Mrs. Cook did not willfully intend to defraud the company. The offer of compromise was declined, and, after further correspondence, negotiations between the parties ended. March 29th Mrs. Cook assigned her interest in the certificate of insurance and all her claims against the defendant company to the plaintiff. Suit was brought March 28, 1890. The defendant pleaded the general issue, and gave notice: (1) That the policy as issued "in pursuance and in consideration of, and in reliance upon, certain material expressed conditions, agreements, stipulations, and warranties contained in the application for said policy, together with the declarations, representations, and answers to the questions contained in said application, and that each and every of the warranties, stipulations, declarations, representations, and answers to the questions in said application contained were materially false and untrue, and false and untrue in every part and portion thereof, and by the said Mary Kelly and Nancy M. Voorheis and Hattie E. Cook known to be false and untrue at the time of making the same, and each and every of them." (2) That the policy issued was a Michigan contract, and void under and by virtue of the laws of the state of Michigan. (3) That the policy was issued upon express conditions and agreements mentioned in the by-laws of the company printed on the back thereof, and that one of the by-laws so printed was that no suit or action against the company should be sustainable in any court of law or chancery, unless such suit or action should be commenced within nine months next after the death of the person insured, and that this suit was not commenced within that time. On the trial the plaintiff had verdict and judgment for $224. Defendant brings error.

The defendant company is a corporation organized under the laws of the state of Indiana, and having its principal office at Elkhart, in that state, and by its by-laws purports to insure "any person between fifty and eighty-five years of age and of sound mind and body and in good health." The application for the insurance was made and signed by Mary Kelly, July 3, 1888, in the presence of the local agent of the company at Kalamazoo, this state. Her age is stated therein at 71 years. Upon the back of this application is indorsed the certificate of her medical examiner, bearing the same date. This application and certificate of examination are indorsed, "Approved July 10, 1888," by the medical director of the defendant company. Upon this application, medical certificate, and approval by the medical director of the company, the benefit certificate issued, signed by the president and secretary of the company, and dated at its office in Elkhart, county of Elkhart, state of Indiana, July 10, 1888. Section 12 of the by-laws provides: "The membership fee is payable at the time the application is written, and will be refunded if the application is declined." Section 6 provides that the board of trustees appoint from their number, among other officers to be chosen, a medical director. By section 25 all assessments are made payable at the home office of the company at Elkhart, Ind., and no payment to any agent or collector is to be binding on the company...