Case ID: nc_202/html/0432-01.html
Source: Caselaw Access Project
Author: {"author": "Per Curiam.", "license": "Public Domain", "url": "https://static.case.law/"}
Date Created: 2024-08-24T03:29:51.129683

HELEN BAKER v. THE TRAVELERS INSURANCE COMPANY.
    (Filed 23 March, 1932.)
    Insurance T c — Cancellation of insurance by employer is conclusive where there is no allegation or evidence that cancellation was illegal.
    Where an employer’s policy of group insurance specifies that it should end as to any employee upon the termination of the employment, or prior thereto upon cancellation by the employer, unless such termination of employment was caused by disability while the policy was in force, and it appears that the employer had terminated the insurance on such employee in accordance with the provisions of the policy: Held, in the absence of allegation or proof that the cancellation of the policy by the employer was wrongful or illegal such cancellation is presumed to have been lawful, and the beneficiary of the employee cannot recover thereon for the death of the employee after the policy had thus been canceled.
    Appeal by plaintiff from Midyette, J., at October Term, 1931, of CUMBERLAND.
    Affirmed.
    
      A. M. Moore and Herbert Lutterloh for plaintiff.
    
    
      Bye & Ciarle for defendant.
    
   Per Curiam.

On 28 May, 1927, the defendant issued to Tolar, Hart • and Holt Mills a group life policy of insurance on the life of Troy Baker in the sum of $1,500, payable to Helen Baker, his wife, as beneficiary, if death should occur during the continuance of the policy while the employee was insured thereunder. The employment of Troy Baker with the Tolar, Hart and Holt Mills ended on 1 July, 1930, and he died on 28 November, 1930. The action was begun on 7 April, 1931.

The policy contains the following clauses:

“Tbe insurance of any employee covered bereunder shall end wben bis employment witb tbe employer shall end, or prior thereto wben tbe employee shall notify tbe employer to make no further deductions from bis pay to apply toward tbe premium for this insurance, except in a case where at tbe time of termination of employment tbe employee shall be wholly disabled and prevented by bodily injury or disease from engaging in any occupation of employment for wage or profit. In such case tbe insurance will remain in force as to such employee during tbe continuance of such disability for tbe period of' three months from tbe date upon which tbe employee ceased to work, and thereafter during tbe continuance of such disability and while this policy shall remain in force until tbe employer shall notify tbe company to terminate tbe insurance as to such employee.”

Tbe plaintiff offered evidence tending to show that tbe insured was “wholly disabled” wben bis employment ceased. But under tbe contract-tbe insurance was to be paid if tbe death of tbe insured occurred during tbe continuance of tbe policy. Tbe plaintiff’s evidence is that “tbe insurance on tbe life of Troy Baker was canceled 12 September, 1930.” Tbe death, therefore, did not occur “during tbe continuance of said policy.” According to her evidence tbe plaintiff brought suit on a void policy. She argues that tbe cancellation was effected without authority; but she neither alleged in her complaint that the cancellation was wrongful or illegal nor suggested her purpose to attack it for illegality when she offered her evidence. In tbe absence of allegation or proof to this effect tbe cancellation is presumed to have been made lawfully. Judgment

Affirmed.