Union National Bank v. Manhattan Life Insurance

Citations

• 52 La. Ann. 36

Syllabus

<p>Syllabus.</p> <p>One applying' for life’ insurance stated in liis application for a policy, tliat lie had never at any tifne prior, applied for a policy of insurance on his life and been rejected.</p> <p>This was not true. He had applied and had been rejected, not on account of ill-health or tuisotmdness of any kind, but because of his unusual request in regard to his age. To this stage of the ease, the court affirms weil vs. New York Life Insurance Co., ATth Ann., 1105, as applying to the facts the head note thus far indicates.</p> <p>But it further appears that the insurance was taken for the security of a creditor of the insured, and this to the knewledge of the company, that all the premiums paid were paid by the creditor, amounting to more than three thousand dollars.</p> <p>The company had at hand or within its reach evidence of the misrepresentation which consisted in failure to disclose that he had been rejected for the reason that he had asked to be permitted to insure as being fifty-one years of age, though he was fifty-two years of age.</p> <p>It does not appear that he (the assured) intended to deceive. There was no motive for deception when his application was made to defendant for a policy.</p> <p>If the officers did not consult the record of rejections for sometime after insurance, they failed to prove that they had not notice to disprove the prima facie evidence of notice admitted. Later the medical examiners of the defendant having been notified of the rejection, no steps were taken to inform the creditor and cancel the policy, or to enable the holder of the policy to protect itself against loss.</p> <p>Held : That the defendant company is estopped as against the third person in good faith.</p> <p>It should, within, a reasonable time after it found out that the assured had not properly answered questions propounded, have informed the holder of the</p> <p>■ policy. It was a duty of the company to give notice to the holder of the policy.</p> <p>The