Coit v. Jefferson Standard Life Insurance

168 P.2d 163, 28 Cal. 2d 1, 168 A.L.R. 673, 1946 Cal. LEXIS 189
CourtCalifornia Supreme Court
DecidedApril 9, 1946
DocketS. F. 17132
StatusPublished
Cited by36 cases

This text of 168 P.2d 163 (Coit v. Jefferson Standard Life Insurance) is published on Counsel Stack Legal Research, covering California Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Coit v. Jefferson Standard Life Insurance, 168 P.2d 163, 28 Cal. 2d 1, 168 A.L.R. 673, 1946 Cal. LEXIS 189 (Cal. 1946).

Opinions

SCHAUER, J.

Plaintiff brought this action on a contract of life insurance to recover $2,500, the face amount of the policy. Judgment was for $71.48, the amount of premiums paid plus interest. Plaintiff appealed. He contends that the trial court incorrectly interpreted a clause of the policy entitled “Aviation and War Risk Exclusion Rider.” After decision by the District Court of Appeal, First Appellate District, Division Two, affirming the judgment this court granted a hearing. We have concluded that the opinion of the District Court of Appeal, written by Mr. Justice Goodell, correctly disposes of the cause. We therefore adopt such opinion with indicated deletions and additions as follows:

“ [ ] On January 19, 1942, Charles T. Parks, then a sergeant in the United States Army, made application to the respondent for insurance in the sum of $2,500. On February 1, 1942, the policy was issued with the insured’s wife, Jean M. Parks, named as beneficiary. On October 22, 1942, while serving with troops, the insured died in an army hospital in Alaska of an embolism following an appendectomy. On December 6, 1942, the insured’s wife died. The insurer made a tender of $71.48, claiming that under the policy’s war risk exclusion rider no more than that was due. The tender was rejected and the administrator of the beneficiary brought this action. The prayer of the complaint was for the reformation of the insurance contract and for $2,500, with interest, but at the trial the'pursuit of the remedy of reformation was abandoned and the plaintiff stood, and now stands, on the policy as issued.
[3]*3“The rider, which was part of the policy when it was issued, [ ] [reads in material part as follows:
‘AVIATION AND WAR RISK EXCLUSION RIDER.
‘Attached to and Forming Part of Policy No. 758,537,
‘ Issued on the Life of Charles T. Parks.
‘ This] policy is issued and accepted upon the express agreement that the liability of the Company shall be limited to the amount specified below if the death of the Insured occurs: ... (2) From any cause while the Insured is serving outside the states of the United States, the District of Columbia, and Dominion of Canada, in the military, naval or air forces of any country at war (declared or undeclared) or within six months after the termination of such service if death be caused from any wounds, injuries or disease received or suffered while in such service; ... In event the insured’s death should occur under any of the conditions defined above, the Company’s liability under this policy shall be a single sum equal to the premiums actually paid on this policy with compound interest at the rate of 3 percent per annum. . . .’
“The trial judge decided that the insured’s death from natural causes while serving in Alaska was not a risk assumed by the insurer. The appellant attacks this conclusion and contends that it was the meaning and intent of the contract to insure against death caused by ills common to everyone, whether in the service or not, and that the exclusion or exemption applies only in case of death from a cause connected with war and its hazards and perils. He argues that ‘The words “From any cause” when read in connection with the heading of the rider attached to the policy—“Aviation and War Risk Exclusion Rider” mean no more than that the liability of the insurer shall be limited when the death of the insured is occasioned by, incidental to or proximately caused by military activities, and not where it has been due to natural, ordinary or accidental causes. ’ Further, that such an interpretation is consistent with the universal rule (37 C.J. 546) that where the language of an insurance contract is ambiguous, it is to be construed most strongly against the insurer, who is presumed to have drawn the policy and caused the uncertainty to exist. That rule, of course, is well settled in this state. (14 Cal.Jur. §24, p. 443; Bayley v. Employers’ Liability Assurance Corp., 125 Cal. 345, 352 [58 P. 7] ; Clarke v. New Amsterdam Casualty Co., 180 Cal. 76, 81 [179 P. 195] ; [4]*4Blackburn v. Home Life Ins. Co., 19 Cal.2d 226, 229 [120 P. 2d 31].)
“The question is new in this state. A score of cases have been cited by the appellant and several by the respondent, most of which came before the courts of other states after World War I and arose because of deaths from pneumonia during the widespread influenza epidemic in 1918-1919, -with a few cases of deaths by accident not caused by the perils of war or combat. It is agreed by both sides and recognized in the decisions that there is a diversity in the holdings, arising not because one group of states follows one line of decision and another group follows another, but because of the difference in the wording of the policies themselves. The cases fall, broadly, into two groups, one holding that the status of the insured as a soldier or sailor is determinative, the other that the cause of death is determinative. There is unanimity, however, on the rule that ambiguities in the policy are to be resolved in favor of the insured and against the .insurer and in most of the cases relied on by the appellant that rule will be found to have played an important part in reaching the decision. (See, generally, 29 Am.Jur., § 911, p. 695; 137 A.L.R. 1263; also A.L.R., vol. 147, p. 1294; vol. 150, p. 1414; vol. 151, p. 1452; and vol. 152, p. 1449.)

“We are satisfied [ ] [that] paragraph 2 [ ] is free from any ambiguity or uncertainty, and that it means precisely what it says. In the first place, it does not attempt to create an absolute exemption because of military or naval service per se; it sets up only a partial exemption, the limitation being geographical in character. It is only ‘while the Insured is serving outside the states of the United States, the District of Columbia, and Dominion of Canada’ that the exemption is operative. Even while serving in time of war within that area the insured seemingly would be covered whether death results from natural causes or, for instance, from wounds or injuries received in maneuvers while training or in actual combat. This seems to be the plain and natural meaning of the language. Secondly, the use of the words ‘From any cause’ makes it doubly clear that death from injuries received in combat, or as a consequence of actual warfare, could not possibly have been contemplated as the sole ground of exemption. Those words show a studied attempt to get away from the constricted meaning for which the appellant contends. No broader or more comprehensive [5]*5phrase could well have been chosen. Moreover, as will presently appear, these words, ‘From any cause’ or words of similar import, are not found in any of the policies involved in the authorities relied on by the appellant. Aside, then from whatever light is shed on the present problem by authorities from other jurisdictions, the language, in our opinion, [ ] means just what the trial judge held it to mean, namely, that death ‘from any cause,’ however remote from, or unrelated to, actual hostilities is within the limitation of liability if it occurs under the conditions named.

“The respondent cites and strongly relies on the recent case of Bending v. Metropolitan Life Ins. Co., 74 Ohio App. 182 [58 N.E.2d 71

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Bluebook (online)
168 P.2d 163, 28 Cal. 2d 1, 168 A.L.R. 673, 1946 Cal. LEXIS 189, Counsel Stack Legal Research, https://law.counselstack.com/opinion/coit-v-jefferson-standard-life-insurance-cal-1946.