Cooper v. Inter-Ocean Casualty Co.

9 Tenn. App. 618, 1929 Tenn. App. LEXIS 121
CourtCourt of Appeals of Tennessee
DecidedFebruary 23, 1929
StatusPublished

This text of 9 Tenn. App. 618 (Cooper v. Inter-Ocean Casualty Co.) is published on Counsel Stack Legal Research, covering Court of Appeals of Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cooper v. Inter-Ocean Casualty Co., 9 Tenn. App. 618, 1929 Tenn. App. LEXIS 121 (Tenn. Ct. App. 1929).

Opinion

SENTER, J.

Por convenience the parties will be referred to as in the court below, John H. Cooper, plaintiff, and Inter-Ocean Casualty Co., defendant.

This suit was instituted before a Justice of the Peace for Knox county to recover from the defendant the sum of $181.25, alleged to *619 be due plaintiff from the defendant as indemnity for disability on account of sickness, under a health and accident insurance policy issued to plaintiff by defendant on February 21, 1927, and alleged by plaintiff to be in full force and effect during the period of disability of plaintiff. Judgment was rendered by the Justice of the Peace in favor of plaintiff and against the defendant 'for the sum of $181.25 and the costs. From this judgment the defendant appealed to the circuit court of Knox county, where the ease was tried before the Circuit Judge without the intervention of a jury, and judgment rendered in favor of plaintiff and against the defendant for the sum of $22 and the costs of the cause. Plaintiff tiled a motion for a new trial on the grounds that the judgment for $22 was inadequate and no evidence to support a judgment for that amount, and that the judgment should have been for the sum of $181.25. The motion for a new trial was overruled, and from this action of the court the plaintiff has appealed to this court, and has assigned errors.

Under the first assignment of error it is said that there is no evidence in the record that defendant was indebted to the plaintiff in the sum of $22, or in any sum except $145 sickness indemnity and $36.25 as penalty for refusing payment in bad faith; (2) that it was error of the court in not rendering judgment for $145 indemnity and $36.25 penalty, totaling $181.25; and (3) that the proof preponderated in favor of judgment for $181.25.

Under the several assignments of error it is the contention of appellant that Tinder the provisions of the policy he is entitled to receive indemnity at the rate of $50 monthly, and that the period of disability from sickness covered by the policy at the rate of $50 per month amounted to $145, covering eighty-seven days; that the defendant was justly liable to plaintiff for that amount, and wilfully refused to pay the same, which entitled plaintiff to recover in addition the twenty-five per cent statutory penalty.

The policy sued on was issued upon the application of plaintiff for insurance. This application is endorsed upon and made a part of the policy issued by the defendant to the plaintiff and upon which the suit is based. In the thirteenth paragraph of the application is contained the following statement:

“13. I have made the foregoing statements as representa-, tions to induce the issuance of the policy for which I have made application and to that end I agree that if any one or more of them be false all right to recover under said policy shall be forfeited to the company, if such false statement was made with actual intent to deceive or if it materially affects either the acceptance of the risk or the hazard assumed by the company.”

*620 The tenth question in the application signed by plaintiff, and the answer thereto, is as follows:

”10. I have no other accident or health insurance, except as herein stated.
“A: No.”

Sections (b) and (d) of the twelfth question in the application and the answers thereto, are as follows:

”12. (b) Have you now, or have you had during the past two years any local or constitutional disease.
” (Ans.) No.
”12. (d) What was your last illness for which you received medical attention, and when?
” (Ans.) Flu — 1926.”

In the court below and in this court the defendant insurance company relied upon the following defenses: (1) That the policy issued the plaintiff insured the plaintiff against a disability resulting from sickness which is contracted and begins during the life of the policy, and that the plaintiff did not contract the illness resulting in his disability after the policy was issued but that the disability resulted from an illness which he had contracted and from which he was suffering- previous to the time of the issuance of the policy, February 21, 1927, and from which he continued to suffer until he was disabled on April 2, 1927. (2) That the plaintiff’s answer to question 12 (b) that he did not then and had not during the past two years had any local or constitutional disease, was false in that in September, 1926, and succeeding months, the plaintiff had suffered from toxic labyrinthitis, a disease similar to auto-intoxication; and that plaintiff was suffering from this disease at and before the time he made application for the policy of insurance which was issued to him, and that he continued to suffer from it, and that it was this disease which resulted in his disability on April 2, 1927; (3) that the plaintiff’s answer to Question 12 (d) that flu in 1926 was the last illness for which he had received medical attention was false, that as a matter of fact plaintiff was suffering from toxic labyrinthitis in September and succeeding months of 1926 and 1927, and for which he received medical treatment beginning in September, 1926, from three, doctors; and (4) that plaintiff’s answer to Question 10 in the application, that he had no other accident or health insurance was false, and that at the time he made application, and for some years prior thereto, he had accident or health insurance in the Brotherhood of Railway Trainmen, and' in the Railway Employees Mutual Relief Society.

The plaintiff denied that he wilfully made any false statements in the application which he signed for the issuance of the policy. He admitted that some time prior to the time that he made the *621 application for the insurance policy sued on he had suffered from the disease of toxic labyrinthitis, but that he had fully recovered from that disease and was in good health at the time he made the application for the insurance policy sued on. He stated that the disease was caused by the same condition that would produce auto-intoxication, but that it was a disease that could' be and was cured by proper treatment, and that he had fully recovered from that disease. He further contended that he made full disclosure of this fact to the agent of the defendant who solicited his application for insurance, and that his answer was made in accordance with the suggestion of the agent soliciting the insurance that since he had not received any indemnity from any company on account of that illness, but had been treated for a case of influenza, that it was only necessary to state in the application that he had been treated for influenza in 1926. He admitted that he had a small benefit policy in a railroad benefit association, and that he so stated the fact to the soliciting agent, and that he thought that the agent wrote it into the application.

There was a considerable conflict in the evidence, and the trial judge sitting without a jury determined the issues adversely to the contention of plaintiff, and rendered a judgment for only $22.

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Bluebook (online)
9 Tenn. App. 618, 1929 Tenn. App. LEXIS 121, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cooper-v-inter-ocean-casualty-co-tennctapp-1929.