Gordon v. Prudential Insurance Co. of America

Citations

• 231 Pa. 404
• 80 A. 882
• 1911 Pa. LEXIS 857

Syllabus

<p>Insurance — Life insurance — Conditional delivery of policy — Payment of premium — “Good health” — Change in health — Notice to insurer.</p> <p>1. In an action upon a policy of life insurance a verdict should be directed for the defendant where it appears that the policy was issued and handed to the agent, who delivered it to the insured before payment of the premium and upon the insured giving a receipt in which it was stated that the policy was “received for the purpose of inspection only and upon the understanding that it is not to be in force until the first premium has been paid by me and the official receipt of the company delivered to me during my lifetime and in good health, as provided in my application upon which the above numbered policy was issued,” and where it is undisputed that on the day of the payment of the premium the insured was ill of the disease which caused his death shortly after.</p> <p>2. The general rule of insurance is that if prior to the consummation of the contract the applicant has died, or there has been a material change in his health, the insurer must be informed thereof; otherwise, a fraud would be perpetrated upon the insurer.</p>