Zimmermann v. The Supreme Tent of Knights of Maccabees of World

• Decision Date: 05 February 1907
• Parties: ZIMMERMANN, JR., by his Curatrix, Respondent, v. THE SUPREME TENT OF THE KNIGHTS OF THE MACCABEES OF THE WORLD, Appellant
• Court: Missouri Court of Appeals

99 S.W. 817

122 Mo.App. 591

ZIMMERMANN, JR., by his Curatrix, Respondent, v. THE SUPREME TENT OF THE KNIGHTS OF THE MACCABEES OF THE WORLD, Appellant

Court of Appeals of Missouri, St. Louis

February 5, 1907

Appeal from St. Louis City Circuit Court.--Hon. Robert M. Foster Judge.

AFFIRMED.

Judgment affirmed.

R. P and C. B. Williams for appellant.

(1) Where a member of a benefit society contracts in advance, in his application and certificate, that subsequently enacted laws shall form the basis of his contract, and expressly binds himself and beneficiary to be governed by such laws, an after-enacted law reducing the amount agreed to be paid in the certificate in the event of the suicide of the member will be enforced. Knights of Maccabees v. Hammers, 81 Ill.App. 560; Chambers v. Knights of Maccabees, 200 Pa. St. 244; Knights of Maccabees v. Stensland, 105 Ill.App. 267; Schmidt v. Knights of Maccabees, 97 Wis. 528; Sheperd v. Bankers' Union, 108 N.W. 188; Royal Highlanders v. State, 108 N.W. 186; Union So. v. Martin, 23 Ky. L. R. 2276; Woerfler v. Trustees, 116 Wis. 19; Messer v. A. O. U., 180 Mass. 321, 62 N.E. 252; Evans v. So. Tier, 76 A.D. 151; Daidge v. Royal, etc., 4 Ont. L. R. 423; Ross v. Modern Brotherhood, 120 Iowa 692; Pain v. Society St. Jean Baptista (Mass.), 52 N.E. 502; Hall v. Western Travelers (Neb.), 96 N.W. 170; Miller v. National Council (Kan. ), 76 P. 830; Sup. Lodge v. La. Malta, 95 Tenn. 157; Fullenwider v. Sup. Council, 180 Ill. 621, 54 N.E. 485; Domes v. Sup. Lodge, 75 Miss. 466; Laeffler v. Modern Woodmen, 100 Wis. 79; Daughty v. Sup. Lodge, 48 La. Ann. 1203; Haydell v. Mut. Reserve, 104 F. 118; Mut. Res. Fund v. Taylor, 99 Va. 208; Supreme Lodge v. Stein, 75 Miss. 107; Supreme Lodge v. Kutscher, 179 Ill. 340; Supreme Lodge v. Trebb, 179 Ill. 348; Supreme Legion v. Clark, 88 Ill.App. 600; Stohl v. Society, 82 Cal. 560; Hobbs v. Assn., 47 N. W. (Iowa) 984; Hughes v. Odd Fellows, 73 N.W. 1015; Westerman v. Supreme Lodge, 94 S.W. (Mo. Sup.) 483; Campbell v. American Ben. Club, 100 Mo.App. 249; Lange v. Royal Highlanders, 106 N. W. (Neb.) 224; Union Fraternal League v. Johnston, 53 S. E. (Ga.) 241. (2) There is no vested interest in the beneficiary in a benefit certificate issued by a fraternal beneficiary association, and therefore a subsequent by-law changing the contract or reducing its obligations, does not disturb any vested rights. Masonic Ben. Assn. v. Bunch, 109 Mo. 560; Wells v. Mutual Ben. Assn., 126 Mo. 630; Richmond v. Supreme Lodge, 100 Mo.App. 8; Morton v. Royal Tribe of Joseph, 93 Mo.App. 78. (3) The fact that a subsequent by-law alters or impairs a prior contract or lessens the liability of the company on such contract does not affect the validity of such by-law, if otherwise reasonable, and the assured agreed in advance that such by-law should form a part of his contract. Supreme Commandery v. Ainsworth, 71 Ala. 436; Eversberg v. Knights of Maccabees, 77 S.W. (Tex. Civ. App.) 246.

William S. Campbell for respondent.

(1) It is an established rule, that courts, being strongly inclined against forfeitures will construe all the conditions of the contract and the obligations imposed, liberally in favor of the assured and strictly against the insurer. Price v. Life Ins. Co., 17 Minn. 497, 10 Am. Rep. 166; Halpin v. Ins. Co., 120 N.Y. 73; Healey v. Mut. Acdent Assn., 133 Ill. 556; Stinchcombe v. Life Ins. Co., 80 Pac. (Oregon, 1905) 213; Smith v. Supreme Lodge, 83 Mo.App. 523. (2) Where the language of a policy may be understood in more sense than one, it is to be construed against the insurer, because he frames it, and is supposed to make it as potent as possible in his own favor. Rankin v. Amazon Ins. Co., 89 Cal. 203, 23 Am. St. Rep. 463; Moulor v. Ins. Co., 111 U.S. 342; Ins. Co. v. McConkey, 127 U.S. 666. (3) Subsequent by-laws undertaking to reduce the amount to be paid under certain contingencies, such as death by suicide, do not take effect on previous contracts, and stipulations in the application, and certificate of insurance that the member will comply with future regulations, means the member will comply with such as relate to his duty as a member, but it does not mean that the association may interfere with the essential purpose of the contract, namely, the indemnity covenanted to be paid. Smith v. Supreme Lodge, 83 Mo.App. 526; Pearson v. Life Indemnity Co., 114 Mo.App. 288; Hysinger v. Supreme Lodge, 42 Mo.App. 635, 636; Grand Lodge v. Sater, 44 Mo.App. 452, 453; Knights Templar's v. Jarman, 104 F. 644, affirmed in 187 U.S. 197; Supreme Council v. Getz, 112 F. 119; Fargo v. Supreme Tent, 96 A.D. 491, 89 N.Y.S. 65; Weber v. Supreme Tent, 61 A.D. 613, 172 N.Y. 490; Beach v. Supreme Tent, 74 A.D. 527, 177 N.Y. 100; Hale v. Equitable Aid Union, 168 Pa. St. 377; Becker v. Benefit Society, 144 Pa. St. 232; Pokrefky v. Firemen's Aid Association, 121 Mich. 456; Starling v. Royal Templars, 108 Mich. 440; Newhall v. Supreme Council, 63 N.E. (Mass., 1902) 1; Gaut v. Supreme Council, 107 Tenn. 603, 64 S.W. 1070; Voigt v. Kersten, 164 Ill. 314; Wist v. Grand Lodge, 22 Oregon, 271; Benjamin v. Mutual Reserve, 79 P. (Cal., 1905) 517; Evans v. So. Tier Relief Association, 182 N.Y. 453. (4) It has been repeatedly held that the provision in the application of the member to comply with future by-laws and regulations, means the member will comply with such by-laws, rules and regulations as relate to his duties as a member of the association, and that the order is powerless, by by-laws or otherwise, to change or modify the essentials of the contract of insurance without the express consent of the member. Morton v. Supreme Council, 100 Mo.App. 91; Sisson v. Supreme Court of Honor, 104 Mo.App. 61.

OPINION

BLAND, P. J.

--On April 13, 1899, defendant issued to Phillip Zimmermann the following certificate of insurance:

"Supreme Tent, K. O. T. M. of the World. No. 11054. $ 1,000. This certifies that Sir Knight Phillip Zimmermann has been regularly admitted as a member of Imperial Tent No. 52. Located at St. Louis, State of Missouri, and that in accordance with, and under the provisions of the laws of the order he is entitled to all the rights, benefits, and privileges of membership therein, and that at his death one assessment on the membership not exceeding in amount the sum of one thousand dollars will be paid as a benefit to Phillip Zimmermann, Jr., bearing relationship to him of son, upon satisfactory proof of his death together with the surrender of this certificate, provided he shall have in every particular complied with the laws of the order now in force or that may hereafter be adopted, and has not obtained his membership by fraud or misrepresentation as to his age, family history, physical condition or occupation, when admitted to membership, as shown by his application which is hereby made a part of this certificate."

On the back of the certificate were printed certain references to provisions of the laws of the defendant order which were made a part of the certificate. One of these laws reads as follows:

"When Certificate Void.--If the member commits suicide within five years after his admission to the order, whether sane or insane, all that his beneficiary shall be entitled to is the sum he has paid into the Life Benefit Fund."

In the application for the certificate (also made a part of the contract) is the following:

"I hereby declare, that the above are fair and true answers to the foregoing questions and I hereby agree that these statements, together with those hereinafter made to the examining physician in this application and the laws of the Supreme Tent of the Knights of the Maccabees of the World, now in force or that may hereafter be adopted, shall form the basis of this contract for beneficial membership."

At the time of the issuance of the certificate in question, the following law of the association was in full force and effect, being section 173, of the laws of 1897.

". . . and no benefit shall be paid on account of the death of any member when death was the result of suicide, within five years after admission, whether the member taking his own life was sane or insane at the time; or when the death of the member was intentionally caused by the beneficiary or beneficiaries of such member. Provided, that in case of suicide within five years after admission, all assessments paid to the Supreme Tent by such member shall be paid back to the beneficiary named in the certificate, and such amount shall be the full amount that can be claimed in any such case."

On June 17, 1905, there was a law of the order, in force and effect, providing that "no benefit shall be paid on account of the death of a member who shall die by his own hand, sane or insane." This law was amended so as to give the beneficiary, in all cases of suicide by the member, an amount equal to twice the amount contributed by the suicide to the life benefit fund (twice the amount of assessment paid in by the suicide during his life).

Zimmermann died on the seventeenth day of June, 1905. The action was to recover the amount of the benefit certificate, with legal interest. The petition is in the usual form for such actions. The answer alleged as a defense, that Zimmermann committed suicide; that during his lifetime he had paid to the life benefit fund eighty-eight dollars and eighty cents, and that prior to the commencement of the suit, defendant tendered plaintiff double this sum (one hundred and seventy-seven dollars and sixty cents) and again tendered the same amount in its answer. At the trial an agreed statement of facts was filed, in which it was admitted that defendant was incorporated as a fraternal benefit association, under the laws of the State of Michigan, and at the time of the issuance of the...