Mutual Benefit Life Insurance v. Robertson

Citations

• 59 Ill. 123

Syllabus

<p>1. Life insurance—renewal receipt. Where a policy is issued to insure the life of a person for the term of life, in consideration of the premium paid, aud to be paid annually during its continuance, a receipt given for the annual premium, and which recites that the policy was thereby continued in force for another year, does not constitute a new contract but merely operates to continue the old one.</p> <p>2. Same—effect of misrepresentation. The wife of the party whose life was insured, and for whose benefit the policy was obtained, stated to the agent of the company at the time of procuring such a renewal receipt, in answer to his inquiry on the subject, that her husband, who was absent in another State, had written to her and that he was in his usual health: Hdd, in an action on the policy, the statement being verbal, and not referred to in the .policy, should be deemed to have been a mere representation. It was independent of the contract, and collateral to it. It may have been untrue, and yet not avoid the policy. To give it that effect it must be proved to have been material, and that it induced the risk.</p> <p>3. But even the failure to communicate a material fact, unknown to the assured, will not vitiate a policy. The undertaking is merely to represent, truly, facts within the knowledge of the assured.</p> <p>4. Same—of the allegations and proofs. In an action upon a policy of life insurance, the introduction of the policy, and receipts for the annual .premiums required by its terms to be paid, and proof of the death of the party whose life is insured, will make a prima facie case in favor of the plaintiff. He is not bound to set out the application and prove its truth.</p> <p>5. Same—of a warranty by the assured. A warranty is in the nature of a condition precedent; it must appear on the face of the policy; or, if on another part of it, or on a paper physical!)' attached, it must appear that the statements were intended to form a part of the policy; or,