The daily star-mirror. (Moscow, Idaho) 1911-1939, 1915-08-05
LIFE COMPANY
WINS DECISION
CLAUSE IN APPLICATION AND
POLICY OF INSURED FOUND
TO BE VALID
OF State Wide Interest-New York
Life Insurance Company Was Sued
For Payment of Policy

That the burden of liability rests
on the insured and that life insur-
ance company need not pay loss in
case of death of an insured if his
health condition is worse at the time
of delivery of a life insurance policy
than it was at the period of making
an application unless the company be
notified is upheld by Judge Edgar G..
Steele of the district court in de
cision handed down in the case of
Julia A. Rathbun and husband versus
the New York Life Insurance compa-
ny, the court holding in favor of the
company. The decision is of state
wide Importance and is the first time
in the history of the court that ver-
dict has been registered against an
insured, but the facts are clear and
the terms of the policy such as to
leave no avenue open for other than
decision for the life insurance COM
pany. The court says:
I'm this case there is no controversy
about what the facts are, and the
case resolves itself into the conclu-
sions that the court should draw from
the facts, as shown.
THE main facts upon which this
decision must be rendered, are about
as follows: Ernest c. Rathbun,
son of the plaintiffs, applied for in
surance in the New York Life Insur-
ance company, and in his application,
signed by the insured, the following
clause is found: That the insurance
hereby applied for, shall not take eff
feet unless the first premium is paid,
and the policy is delivered to and re-
ceived by me during my life time, and
in good health, and that unless other
wise agreed in writing, the policy
shall then relate back and take effect
as of the date of this application The
facts show that the son of the plan
tiff was in apparent good health at the
time he signed the application, but
after he signed the same, he had an
attack of appendicitis, and went to the
Gritman hospital in Moscow, and was |
operated upon and died before leav-
ing the hospital; that the application
was sent to the agent at Spokane, ana
to the company in New York, and the |
policy was sent to the agent at Spo- |
kane, and the agent in Spokane mail
ed it to the defendant in Moscow; that |
the policy arrived in Moscow after
he insured had been operated upon
'or appendicitis, and while still in the
hospital, and that friend of the in
sured received the mail at the post
office containing the insurance, and it
vas found in the trunk of the insured
after his death, and that the plaintiffs
ire the father and mother of the de-
,edent.
Practically the only question ne
,essary for the court to determine,
When it is shown by the admitted
acts that the insured, while agree
ng in his application that it should
lot be received by him, and should
lot be in effect unless received by him
n good health, that in fact, when he
eceived the policy, he had been op
rated upon for appendicitis, and died
within very short time thereafter.
Under all of the we'll considered
pinions, in a policy like the present
ne, the application becomes part
f the policy, just the same as if
, were written into the policy
"The contention of the plaintiffs. ,
rho are seeking to collect the inSur- ,
nee, is that by sending this policy
trough the mail, without any know
edge of the changed condition of the ! 3,
ealth of the insured, that the COM '
any waived the clause in the agree
tent, viz, the clause that it should !
OF be delivered, and would not take '
feet, unless the insured was in good \
ealth at the time of the delivery of q
lie policy" s
In his decision Judge Steele quotes v
ON decisions in cases of similar ma
ire from Indiana, North Dakota, and
issouri courts and analysizes the de- Il
sions of those courts in comparison t
ith the present case. In conclusion a