New-York tribune., 1902-03-16
AGENT or COMPANY, Not or NSrRED.
IMPORTANT DECISION RENDERED RY COURT OF
APPEALS N REGARD TO MEDICAL EH-
AMINER OF METROPOLITAN LIFE

AMGNER or METROPOLITAN LIFE
one of the important decisions handed
down by the Court OF Appeals on February .
last is that rendered i'm the OF Olive A. Ster-
naman against the Metropolitan Life insurance
Company the action having been brought 10 re
cover amount alleged to be due on a policy OF
insurance issued by the company to Mrs. Sterna-
man. beneficiary. upon the life OF her husband
George II. Sternaman
Tersely put by Judge Nann, the appeal turns
substantially upon the following question When
an applicant for life insurance makes truthful
answers TO all questions asked by the medical ex-
aminer. who fails TO record them as given. and
omits important part. stating that IL is unm-
portant can the beneficiary show the answers
actually given. in order to defeat forfeiture
claimed by the insurer account Of the falsity
of the answers recorded. even If IL were agreed
in the application that the medical examiner. en-
poycd and paid by the insurer only. should not
be its agent but solely the agent of the insurer
Upon the trial Of the case the defendant was sue
CeSsful. Upon the appeal taken by Mrs. SteTna-
to the Appellate Division in the Fourth De
partment, the company was again, successful In
the Court Of Appeals. however, Mrs. Sternaman
succeeds IN IN obtaining reversal OF me Geternna nina
however. Chief Justice Parker and Judge Gray
voting for affirmance.
the power 10 contract is not unlimited that. While
as general rule there is the utmost freedom OF
action In this regard some restrictions are placed
upon the right by legislation by public policy and
1t does exist, provide that one is the agent
of the other and the time and with
erence to the subject that there is relation
of agency between them. They cannot bind them
selves by agreeing that loan, in fact void for
usury. Is not usurious, that a copartnershp
which actually exists between them does not
ist They cannot by agreement change the laws
Of nature or OF logic. or create relations physical
legal or moral. which cannot be created. In other
words they cannot accomplish the impossible by
contract. Judge Nann adds: Can parties agree
that facts which the law declares, establish
certain relation. not only do not establish that
relation, but establish directly the opposite? can
appoint II his agent for definite purpose ana
then agree with & that b ia not the agent of A
but is the agent of e for that purpose, there be
ing no agreement whatever between b and C?'
In closing the court decides that the medical
examiner of a life insurance company
agent of the company In making the examination
taking down the answers and reporting them to
the company. and is not the agent of the appli-
cant. although the latter agrees with the company
that for that purpose he shall be deemed to his
agent; and that the knowledge of the examiner
thus acquired. his Interpretation Of the answers
given, and his recording them are the
knowledge, Interpretation and errors of the
panN itself, which il estopped from taking au-
vantage of what 1t thus knows and what II thus
does. when II Issues policy and accepts the
premium"