Wood v. Bhd. of Am. Yeomen

• Decision Date: 14 June 1910
• Citation: 148 Iowa 400,126 N.W. 949
• Parties: WOOD ET AL. v. BROTHERHOOD OF AMERICAN YEOMEN.
• Court: Iowa Supreme Court

148 Iowa 400

126 N.W. 949

WOOD ET AL.

v.BROTHERHOOD OF AMERICAN YEOMEN.

Supreme Court of Iowa.

June 14, 1910.

Appeal from District Court, Polk County; Hugh Brennan, Judge.

On motion, judgment was entered for plaintiffs on the pleadings. The defendant appeals Reversed.

See, also, 140 Iowa, 98, 117 N. W. 1123.

E. C. Corry and Dunshee & Haines, for appellant.

Ryan & Ryan, for appellees.

LADD, J.

After the issues had been made up, judgment, on motion of plaintiffs, was entered in their favor for the amount of the certificate of insurance less deductions for the reserve fund. Necessarily, this ruling was based on facts conceded by the pleadings, and these may be stated. The defendant is a fraternal society organized under chapter 9 of title 9 of the Code, and as such delivered to Geo. D. Wood a certificate of insurance, May 31, 1899, with his then wife, Ella F. Wood, named therein as beneficiary. The certificate in terms made the application part thereof, and agreed “that in event of my death by suicide, whether sane or insane, any certificate issued upon said application by said order shall be void.” A by-law allowed any member to change beneficiaries if the assured pay to the correspondent a fee of 50 cents and deliver to him the benefit certificate with written surrender on the back thereof and directions as to the change desired and name and relationship of the beneficiary. “The correspondent shall then forward the certificate with the fee of fifty cents to the chief correspondent who shall at once issue a benefit certificate as requested.” Ella F. Wood died, and, in accordance with this by-law, the insured on November 21, 1903, surrendered the certificate to the local correspondent and made a written request for the change in words following: “I, George D. Wood, the same person to whom this certificate was issued, hereby authorize the officers of the castle to cancel this certificate and issue a new one for $3,000.00--Dollars. (payable to Elizabeth Wood, Clifton D. and Hazel D. Wood, wife and children, share and share alike the survivor or survivors.) I declare that I have complied with all the laws of this fraternity, and all its regulations, in the presence of these witnesses whose names appear below.” This was accompanied with the fee required, and with the certificate was forwarded to the chief correspondent, who on December 3d issued a new certificate with the names of the above persons inserted as beneficiaries, among other things stipulating that “If said member shall die by his own hand, whether sane or insane, within three years from the date of this certificate, * * * then this certificate shall be null and void.” The monthly assessment was fixed therein at $1.85, instead of $1.70, as in the original certificate. In the original certificate, upon the death of the assured, payment of “the amount realized from one assessment not to exceed $3,000” was stipulated, while in the new certificate a lump sum of $3,000 was to be paid subject to this provision, which was not in the original: “That should said member die before having lived out his expectancy of life, based on his age at entry according to the American Experience Tables of Mortality, there shall be paid into the reserve fund of this association out of the proceeds of this certificate otherwise payable to the beneficiary a sum equal to the amount of ten assessments, per year at the rate last paid by the member for the unexpired period of such life expectancy, based on his age at entry, and any accident or disability benefits to which he may become entitled shall be subjected to proportionate deduction for the reserve fund, to be used for the payment of assessments on any year in excess of the amount required for the payment of six deaths to the thousand members in good standing.” The date at the end of the last certificate was the same as that on the first, May 25, 1899. The new certificate was mailed to the local correspondent, who received it December 3, 1903; but whether it was ever delivered to the assured, who died the next day, was put in issue by the pleadings. In ruling on the motion the court must have proceeded on the theory that it was not delivered, and also that the allegation of the answer that the assured's death was suicidal was true.

1. It is apparent that no recovery can be had on the original certificate alone, for by its terms no indemnity is payable upon death resulting from suicide. Moreover, the action is at law, and it provides for the payment of an assessment only which could be enforced in equity alone. Sleight v. Supreme Council, 121 Iowa, 724, 96 N. W. 1100. The new certificate stipulates for the payment of a lump sum without reference to an assessment, and, under numerous authorities, the remedy on it is at law. Van Norman v. Modern Brotherhood of America, 134 Iowa, 574, 111 N. W. 992. As seen, this differs materially from the first certificate, and with respect thereto appellant contends: (1) That it never became effective save in changing beneficiaries because never delivered to the assured; (2) nor accepted by him in the manner prescribed therefor; (3) nor was defendant notified of such acceptance; and (4) even if all this had happened, three years had not elapsed after its date, and therefore the suicide clause obviated all liability.

2. The last ground may be disposed of first and the previous three together. The clause in the last certificate relating to suicide invalidates it if suicide is committed “within three years from the date of this certificate.” This should be construed to have reference to the time specified in the instrument. As applicable to papers, Webster gives two definitions of “dates”: “(1) That statement...