State Security Life Insurance v. Kintner

185 N.E.2d 527, 243 Ind. 331, 1962 Ind. LEXIS 165
CourtIndiana Supreme Court
DecidedOctober 18, 1962
Docket30,325
StatusPublished
Cited by31 cases

This text of 185 N.E.2d 527 (State Security Life Insurance v. Kintner) is published on Counsel Stack Legal Research, covering Indiana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State Security Life Insurance v. Kintner, 185 N.E.2d 527, 243 Ind. 331, 1962 Ind. LEXIS 165 (Ind. 1962).

Opinions

Jackson, J.

— This case comes to us on petition to transfer from the Appellate Court under Acts 1933, ch. 151, §1, p. 800, being §4-215, Burns’ 1946 Replacement. See: State Security Life Insurance Co. v. Kint-ner (1961), 175 N. E. 2d 36.

This action was instituted by the appellee, Ada G. (Vicars) Kintner, on an insurance policy (No. 1241) issued by the appellant, State Security Life Insurance Company, on the life of her husband, Carl William Vicars, with the appellee being named as primary beneficiary thereunder. Judgment was rendered for [333]*333appellee in the Vermillion Circuit Court. Most of the facts herein are undisputed in as much as the parties in the trial below stipulated and agreed to them.

The appellee’s husband, Carl William Vicars, died at 12:22 o’clock a.m., Central Standard Time, on March 31, 1955. The cause of his death resulted from accidental means, i.e., from injuries sustained in a motor vehicle collision which occurred on March 30, 1955. If the insurance policy issued by appellant was in effect at the time, the death occurred under circumstances invoking the “double indemnity” or Accidental Death Benefit provisions of the policy.

The appellee’s husband had submitted on November 27, 1954, an application for life insurance to the appellant life insurance company through an agency of the company. The sum of $6.03 was paid by appellee’s husband to the appellant’s agent at the time the application was submitted. However, this amount was not sufficient to pay in full the initial premium on the policy of insurance applied for.

The life insurance policy was not delivered to Carl William Vicars until some time after December 10, 1954. The exact date of delivery is uncertain although the insurance agent testified that it was either on the 10th or within the next two days. Upon delivery, the insured paid an additional twenty-one cents to the insurance agent as part of the premium.

A statement of the insurance agency dated December 10, 1954, was admitted into evidence by stipulation of the parties, and it indicated that a monthly premium of $7.35 would be charged on the policy written on the life of appellee’s husband, Carl William Vicars, beginning November 27,1954.

Subsequent premium payments were made by the insured to the insurance agency acting for the ap[334]*334pellant, as follows: February 5, 1955, $9.51, and February 18, 1955, $9.51. It. appears that a portion of these payments ($2.16). were applied to á separate policy of insurance on the life of.the appellee.

Payments made by the. insured were remitted by the insurance agency to the appellant company, as follows: November 27, 1954, $9.30; December 13, 1954, 21 cents; February 5, 1955,' $9.51; and February 21, 1955, $9N1. . . ..

The appellant refused to provide proof of loss papers to appellee on the death of her husband, contending that the insurance had lapsed prior to the time of the death of the husband, due to a failure to make timely payment of the premiums.

The trial court found for the appellee in ruling upon motions for á directed verdict submitted by both appellant and appellee at the conclusion of all the evidence. Judgment was rendered accordingly upon the verdict returned by the jury under the mandatory instruction of the court.

Since both parties moved for a directed verdict at the conclusion of all the evidence, the cause was submitted to the court for determination, and it was proper for the court to render its decision on the issues presented. Combs and Broderick d/b/a v. Keller et al. (1957), 127 Ind. App. 531, 536, 142 N. E. 2d 474. It must be presumed that the appellant waived its right to a trial by jury in failing to further request that the cause be submitted to. a jury after the denial of its motion for. á directed verdict. Michigan Cent. R. R. Co. v. Spindler, Admr. (1937), 211 Ind. 94, 5 N. E. 2d 632.

The question presented here is:' On what date were the premiums due and payable on the policy of insuance (No., 1241), issued by appellant on the.life [335]*335of Carl William Vicars? .The answer .to this question will determine whether or not' the' policy, was in force at the time-of the death of the insured.

The application for life insurance, together ' with the policy, constitute the contract between the insurance company and the insured. Acts 1935, ch. 162, §151A as added by Acts 1943, ch. 189, §2, -p. 562; 1959, ch. 146, §1, p. 355, being §39-4206a (3), Burns’ 1961 Cum. Supp.

The insurance policy states on its face that the date of issue is November 27, 1954. Contained in the application for insurance is the statement that the policy is to be dated November 27, 1954. However, the application also provides a condition precedent as to the policy taking effect, as follows:

• “... that the insurance hereby applied for shall not take effect unless and until the full first premium . . . shall have been paid and the policy delivered to the applicant during the lifetime and sound health of the applicant....”

Under the “General Provisions” of the policy, the date of issue is referred to in the section providing for the payment of premiums:

“The annual, premium shown on the first page hereof is payable on the date of issue and annually thereafter during the lifetime of the Insured, until premiums have been paid for the premium paying period. ... In lieu of annual payments, premiums may bé payable semi-annually or quar- . terly at the Company’s published rates therefor . in effect at the date of issue of this policy, with -the premium due dates determined by the inte'r-...valef payment, selected..,..............

■ -It- is appellee’s position that the section providing for th¿ payment of premiums makes no mention of monthly payments. The section only makes provision [336]*336for annual premiums, or in lieu thereof, premiums may be payable semi-annually or quarterly. Therefore, appellee argues that the date of issue to which the specified premiums are related under the terms of the policy cannot be applicable in the situation where monthly payments are made. The proper anniversary date, according to appellee, in such a situation where the time of payment is not expressly specified in the policy, is the date on which the policy became effective. In the case at bar, this would have been the date of delivery on December 10, 1954, or within the next two days.

If appellee’s position is accepted, then the three monthly payments made in advance by Carl William Vicars on the insurance policy would have carried the paid up period to around the tenth of March, 1955, (or within the next two days), and coupled with the grace period,1 the policy would have been in full force and effect at the time of Mr. Vicars’ death on March 31,1955.

Appellant, on the other hand, cites a provision on the face of the policy which provides as follows:

“This insurance is granted in consideration of the application and payment of premiums as herein provided. Policy years, policy months and policy anniversaries shall be computed from the date of issue unless otherwise provided by endorsement hereon.”

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Bluebook (online)
185 N.E.2d 527, 243 Ind. 331, 1962 Ind. LEXIS 165, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-security-life-insurance-v-kintner-ind-1962.