Mohrstadt v. Mutual Life Ins.

Citations

• 115 F. 81
• 52 C.C.A. 675
• 1902 U.S. App. LEXIS 4190

Syllabus

<p>Life Insurance — Contract of Insurance — Construction of Receipt.</p> <p>An application was given to a local agent of defendant, a life insurance company, for a policy of insurance on a certain plan. The applicant also delivered his note to the agent for the amount of the first annual premium on such policy, and was given a receipt on a form prescribed by defendant, which contained the following provision: “Said policy of insurance to take effect and be in force from and after the date hereof, provided the said application shall be accepted by the said company; but, should the same be declined or rejected by said company, then the full amount hereby paid shall be returned to applicant upon the delivery of this receipt.” Defendant declined to issue the policy applied for, but issued one on a different plan, and forwarded it to be submitted to the applicant; but he died before it had been submitted, and without having been notified of defendant’s action. 'Held, that the receipt did not constltute a contract for temporary insurance, to remain In force until such time as defendant should act on the application, hut was merely a qualified acceptance of the risk, — the insurance to become effective only if the application was approved by defendant, — and that the same having been, in effect, rejected, there was no contract of insuranc'e by which defendant was bound.</p>