Luce v. Service Life Insurance

227 Iowa 532
CourtSupreme Court of Iowa
DecidedNovember 21, 1939
DocketNo. 44808
StatusPublished
Cited by2 cases

This text of 227 Iowa 532 (Luce v. Service Life Insurance) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Luce v. Service Life Insurance, 227 Iowa 532 (iowa 1939).

Opinion

Miller, J.

Tbe pleadings herein are quite voluminous. They may be summarized briefly as follows:

Tbe plaintiff alleged tbe following facts: He is tbe administrator of tbe estate of Helen Winifred Luce, deceased. Defendant is a life insurance company, organized under tbe laws of tbe state of Nebraska, authorized to and transacting business in Iowa. On August 27, 1937, defendant issued and delivered to decedent a policy insuring her life in tbe amount of $1,000 with her mother, intervener herein, named as beneficiary. At tbe time of tbe delivery of tbe policy, advance premium for three months was paid to defendant. On October 20, 1937, decedent died. Proofs of her death were furnished to the defendant. Plaintiff was unable to set out copies of tbe proof of death or copy of tbe policy because the same were in tbe possession of tbe defendant. Tbe interests of the beneficiary were assigned to plaintiff by written assignment, copy of which is set out. Defendant paid $500 on tbe claim. Recovery was sought for tbe balance of $500 with interest and costs.

The answer of tbe defendant consisted of a general denial of all allegations not specifically admitted. Tbe answer specifically denied that plaintiff bad any right to recover under tbe policy, either as beneficiary or assignee. Tbe answer further alleged tbe following facts: The pretended assignment to plaintiff was void because, at tbe time tbe assignment was attempted, tbe beneficiary bad no right, title or interest in tbe policy or proceeds thereof or any claim arising thereunder for tbe reason that a controversy existed between tbe beneficiary and tbe defendant whether tbe policy was ever in force, and it was agreed by tbe beneficiary and tbe defendant that such a controversy did exist and was genuine, and tbe parties agreed to and did settle all differences in consideration of tbe sum of $500 paid to tbe beneficiary by the defendant, and tbe beneficiary released and discharged defendant from all claims under tbe policy and surrendered tbe policy to tbe defendant. Copy of the release is set out. Defendant further alleged that tbe beneficiary at no time disavowed tbe settlement and satisfaction, nor did she tender or offer to repay tbe defendant tbe amount paid thereunder. Defendant prayed that the petition be dismissed with costs. Defendant tendered tbe sum of $5.71, [535]*535as the premium paid on tbe policy, and the sum of $12.25 representing the costs accrued to the date of the tender.

Plaintiffs reply to the answer stated that the settlement was without consideration and not binding upon the beneficiary because no good faith controversy existed between the parties. Also, that the settlement was procured by fraud and undue influence, defendant threatening to prosecute the beneficiary in criminal proceedings unless the settlement were made; that the beneficiary, at the time, was sick and in a weakened condition, and the attorney for defendant overpowered her and induced her to sign a release which was in fact void.

After the jury was impanelled, but before evidence was introduced, the beneficiary named in the policy filed a petition of intervention, which alleged the issuance of the policy on August 21, 1937, the payment of three months’ premium, the fact that she was named as beneficiary under the policy, the amount being $1,000, the death of the decedent on October 20, 1937, the furnishing of proofs of death, the payment of $500, and concluded with a prayer for the balance of $500 with interest and costs.

To the petition of intervention defendant filed answer setting forth the same facts alleged in its answer to the petition of plaintiff. In replying to such answer, the intervener attacked the settlement on substantially the same grounds stated in the plaintiff’s reply.

The intervener is the wife of the plaintiff and was represented by the same attorneys that represented the plaintiff. The trial proceeded and evidence was introduced jointly by the plaintiff and intervener. They introduced the policy in evidence, the same being a policy of life insurance on the life of the decedent, whose age at the time of the issuance of the policy was 17 years. The amount of the policy is $1,000 and is payable at age 85, or upon the death of the insured. The premium provided for was $5.59 in advance, quarterly, during the lifetime of the assured until premiums for 68 years should be paid. The date of the policy is August 21, 1937. Among the conditions included in the policy is the following, “This policy shall not become effective until the first premium upon it is paid daring the good health of the assured.” It also provided:

“I agree that insurance hereunder shall become effective [536]*536as of the date of the issuance of the policy provided issuance and delivery thereof shall first have been authorized and delivery shall have been made to me or for me to someone not connected with the Company and not a solicitor of insurance, and provided further that the first -■ annual premium shall have been paid to the Company in cash and delivery of the policy shall have been made as above during my lifetime and while 1 am in good health.”

Among the statements contained in the application for the policy which was attached to it were the statements that the applicant was not pregnant, had had no miscarriages, and that her menstrual functions were regular.

Plaintiff and intervener jointly introduced in evidence proofs of death, which showed that the deceased died October 20, 1937, at Osceola, Iowa, of peritonitis. The statement of the physician, as to contributing cause of death was “septic abortion (history) prior to September 21, 1937.” The statement also was made that the deceased was first sick September 20, 1937, and was treated in a hospital from September 21 to October 1, and from October 10 to October 20, 1937, at the Osceola Hospital. In making proofs of loss, the beneficiary agreed that “the written statements and affidavits of all -the physicians who attended or treated the insured * * * shall constitute * * * a part of the proofs of death and * * * all provisions of law forbidding any physician or other person who attended the deceased from disclosing any knowledge or information acquired by him, are hereby waived and such physician is hereby authorized to make such disclosure.”

The plaintiff testified, both for himself and the intervener, as to his capacity as administrator, the death of the deceased, her age at time of death, that the policy was delivered to the deceased at their home by one Harry Shields, soliciting agent, who took the application for the defendant, that the delivery was made on August 23, 1937, at which time deceased paid $5.59 in cash, and from that time on the beneficiary had the policy. On cross-examination, he testified that they had a policy on their son. He thought this policy was delivered July 13, 1937. He was sure that the boy’s policy was received prior to the time the policy of the decedent was received. Defendant then undertook’to identify, for the purpose of introduction in [537]*537tbe evidence, a written receipt signed by tbe son and tbe inter-vener, witnessed by tbe said Shields, reciting that tbe boy’s policy was delivered September 14, 1937. Plaintiff and inter-vener objected to the identification of tbe exhibit, because it was incompetent, irrelevant and immaterial and not cross-examination. Tbe objection was sustained.

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Related

In Re Estate of Shumaker
12 N.W.2d 207 (Supreme Court of Iowa, 1943)
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234 Iowa 195 (Supreme Court of Iowa, 1943)

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Bluebook (online)
227 Iowa 532, Counsel Stack Legal Research, https://law.counselstack.com/opinion/luce-v-service-life-insurance-iowa-1939.