Wilson v. Police Beneficiary Ass'n

Citations

• 266 Pa. 317
• 109 A. 596
• 1920 Pa. LEXIS 560

Syllabus

<p>Beneficial association — Life insurance — Reinsurance—Modification of contract — Knowledge and consent of insured — Rights of heneficiafy — Assessments—Misstatement of age — Estoppel—Notice —Certificate—Application.</p> <p>1. The mere fact that a beneficial association, subsequent to the issue of a beneficiary’s certificate, reinsured all its members under a group policy of life insurance, and thereafter made a monthly assessment of $3.50 in place of an assessment of fifty cents upon the death of each member, which had theretofore amounted to about $5 a month, does not preclude the beneficiary from recovering the amount specified in the certificate, which was an amount equal to fifty cents for each member in good standing, if it does not appear that the insured consented to the reinsurance, or that he was present at or had notice of any meeting where such consent was given, or that he ever accepted such reinsurance in place of his certificate or as a modification thereof.</p> <p>2. In such a ease the beneficiary was not precluded from recovering the full amount of benefits by the fact that the insured’^ age was misstated in the card accompanying the group insurance, which provided that the amount payable in case of misstatement of insured’s age shall be the amount which the premium paid for the insurance would have purchased at the rate given for the correct age, if the insured’s age was not referred to in the certificate or the application therefor; and his age was not material, as lie certificates made no distinction as to age, and it did not appear that the insured or his beneficiary ever saw the card or furnished añy data placed thereon.</p> <p>3. In such.a case the payment of the assessments of $3.50 per month in place of the fifty-eent assessment upon the death of each member does not estop the beneficiary from claiming upon the original certificate, where it appears that the assessments were paid when they matured and that no fraud or bad faith was.shown,