Wann v. Metropolitan Life Ins. Co.

• Decision Date: 22 July 1931
• Docket Number: No. 1279-5737.,1279-5737.
• Citation: 41 S.W.2d 50
• Parties: WANN v. METROPOLITAN LIFE INS. CO.
• Court: Texas Supreme Court

41 S.W.2d 50

WANN v. METROPOLITAN LIFE INS. CO.

No. 1279-5737.

Commission of Appeals of Texas, Section B.

July 22, 1931.

Error to Court of Civil Appeals of Second Supreme Judicial District.

Action by William Charles Wann against the Metropolitan Life Insurance Company. Judgment for plaintiff was reversed and rendered by the Court of Civil Appeals , and plaintiff brings error.

Judgments of district court and of Court of Civil Appeals reversed, and cause remanded.

McLean, Scott & Sayers and Mack & Mack, all of Fort Worth, for plaintiff in error.

Vinson, Elkins, Sweeton & Weems and Fred R. Switzer, all of Houston, for defendant in error.

LEDDY, J.

On May 5, 1925, defendant in error issued its group policy No. 2000G to the Southern Pacific Company, and on the same date issued its certificate No. 79350 to plaintiff in error, William Charles Wann, reciting that, subject to the terms and conditions of the group policy aforesaid, he was insured in the sum of $250. On September 12, 1925, said company issued its rider No. 7938 showing that the amount of said insurance was increased to $2,500.

Plaintiff in error, while engaged in the performance of his duties as an employee of the railway company, to whom was issued the above group policy, sustained certain injuries which he claimed totally and permanently incapacitated him from performing any labor. Subsequently he brought this suit to recover the compensation provided in said policy for this character of disability. In paragraph 2 of his petition, the insurance contract relied upon is thus described: "That heretofore, on the 5th day of May, 1925, the defendant insurance company contracted, covenanted and agreed in writing to insure William Chas. Wann, one of the plaintiffs, against bodily injury and disease contracted while said insurance was in force and effect, thereby resulting in total and permanent disability; that said certificates of insurance were issued on the consummation of said contract, said certificates being numbered 79350 and 79350a Group Policy No. 200-G and Group Policy No. 2000; that said certificates, as stated, were issued to plaintiff on the 5th day of May, 1925, and provided that in the event said William Chas. Wann did sustain injury by which and as a result thereof he became totally and permanently disabled, or if the plaintiff William Chas. Wann, contracted disease by which he became totally and permanently disabled that said insurance corporation agreed, upon proof and the receipt of proof of such disability, to pay unto the said William Chas. Wann monthly installments at the rate of $86.25 per month until the full and entire amount provided for by the terms of said policy, to-wit, $2587.50, as specified in the contract, had been and was fully paid up."

Upon the trial plaintiff in error offered in evidence the certificate and rider evidencing his right to disability benefits under the group policy. The certificate reads as follows:

                   "Metropolitan Life Insurance Company
                  "Incorporated by the State of New York
                   "A Mutual Life Insurance Company
                "Serial No. 79350
                  "This Is To Certify
                

"That under and subject to the terms and conditions of Group Policy No. 2000G William Charles Wann an employee of Southern Pacific Lines in Texas and Louisiana (herein called the employer) is insured for Two Hundred Fifty Dollars.

"If death occur while the employee is in the employ of the employer, or prior to the next monthly premium due date of the Group Policy following the date of discontinuance of employment, the amount of insurance in force on said employee, in accordance with Group Policy as above, will be paid to Agnes Wann, Beneficiary.

"The right to change the Beneficiary is reserved.

"No assignment by the employee of the insurance under the above Group Policy is valid.

"Privilege of Continuance.

"In the event of the termination of the employment for any reason whatsoever, the employee shall be entitled to have issued to him by the Metropolitan Life Insurance Company, without further evidence of insurability, and upon application made to that Company within thirty-one days after such termination, and upon the payment of the premium applicable to the class of risk to which he belongs and to the form and amount of the Policy at his then attained age, a Policy of life insurance in any one of the forms customarily issued by such Company, Term Insurance excepted, in an amount equal to the amount of his protection under the Group Insurance Policy at the time of such termination.

"Metropolitan Life Insurance Company. New York, May 5, 1925.

"Form C707 S. P. Certificate F. H. Ecker, President.

"Dec. 1923"

There is printed on the back of Exhibit 1 the following:

"Total and Permanent Disability Benefits

"Any employee shall be considered as totally and permanently disabled who furnishes due proof that, as the result of bodily injury suffered or disease contracted while his insurance was in force and prior to his sixtieth birthday, he is permanently, continuously and wholly prevented thereby from performing any work for compensation or profit.

"Upon receipt of due proof of such disability, the Metropolitan Life Insurance Company will pay to such employee, in lieu of the payment at death of the said insurance on the life of such employee, equal monthly installments based on the amount of insurance in force on such employee at the date of receipt of proof of such disability, as shown in the following table:

                                                      Amount
                "Amount of         No. of Monthly     of Each
                Insurance           Instalments     Instalment
                $ 250                     5            $50.00
                  500                    10             50.35
                1,500                    30             51.75
                

"For amounts of insurance in excess of $1,500 the same number of instalments (30) on the basis of $34.50 monthly for each $1,000 of insurance.

"Such instalment will be made only during the continuance of such disability.

"In the event of the death of such employee during the period of total and permanent disability, the present value of any installments remaining unpaid shall be paid, in one sum, to the designated beneficiary.

"This Certificate is valuable to you, and should be kept in a very safe place, known to your beneficiary."

The rider attached to the certificate provided:

"Metropolitan Life Insurance Company

"Subject to the Terms and Conditions expressed in Policy No. 2000G Serial No. 79350-A, the amount of Insurance on the life of William Charles Wann an employee of Southern Pacific Lines in Texas and Louisiana has been increased Twenty Two Hundred Fifty Dollars.

"New York September 12, 1925

                                "Haley Fiske, President
                

"(Effective Date) Form G.76B S. P. T. L. Nov. 1927 GHT"

The group policy referred to in the certificate and rider was not offered in evidence, nor was any effort made to prove its contents.

But one issue was submitted to the jury, and in response thereto a finding was made that plaintiff in error, William Charles Wann, by reason of the injuries sustained, was permanently, continuously, and wholly prevented "from the substantial performance of any work for compensation...