Opinion ID: 1659203
Heading Depth: 2
Heading Rank: 1

Heading: whether tammy duett is entitled to any additional death benefits under the terms of the group policy and the individual certificate of insurance issued to billy dewayne duett?

Text: Gulf Guaranty argues that Billy: purchased level credit life insurance coverage at three different levels, one for each of the three terms of coverage specified in his certificate. Billy Dewayne Duett died during the third level term of coverage, and during that term his coverage was for the level amount of $8,700.30. As a consequence, Gulf Guaranty's payment of $8,700.30 to the Bank fulfilled Gulf Guaranty's obligations under the policy and the certificate. No additional policy benefits or interest is due. In support of this argument, Gulf Guaranty points out that the term of insurance is listed on the schedule as three annual payments of $8,700.30 each, beginning May 15, 1990. According to Gulf Guaranty, the clear and unambiguous language of the contract indicates that Billy purchased level insurance at three different levels, which entitled him to coverage in the following amounts: (a) $26,100.90 prior to May 15, 1990, (b) $17,400.60 from May 16, 1990 until May 15, 1991, and (c) $8,700.30 from May 16, 1991 until May 15, 1992. [1] Guaranty also cites the master policy, which outlines the procedure for calculating the premiums for credit life insurance: Premiums  Life: The required premiums for Life Insurance for each one hundred dollars ($100.00) of Amount of Insurance and for each month of the Term of Insurance  Months are shown in the table below. Type Premium Reducing 6 2/3 cents Level 13 1/3 cents Joint Reducing 11 7/12 cents Joint Level 23 1/3 cents The premiums for other amounts of insurance and terms of insurance are in direct proportion to the premium rates quoted above. According to Gulf Guaranty, when this provision is applied, Billy's premium under its interpretation of the policy would have been $673.90  which is exactly what Billy was charged. On the other hand, Gulf Guaranty argues that if Duett's coverage was at one level amount for 31 months as the plaintiff argues, his total premium would have been approximately $1,095.04, almost twice what he actually paid. To the contrary, Tammy argues that her husband purchased level insurance and that she is entitled to the entire amount of coverage  $26,100.90. To support her argument, she cites the definition of level life insurance given in the certificate of insurance, which states that level life insurance is level for the term of coverage and is equal to the amount of insurance. Our familiar rule of contract interpretation is that a clear and unambiguous contract will be enforced as written. Century 21 Deep South Properties, Ltd. v. Keys, 652 So.2d 707, 717 (Miss. 1995). Furthermore, [i]n contract construction cases our focus is upon the objective fact  the language of the contract. We are concerned with what the contracting parties have said to each other, not some secret thought of one not communicated to the other. Heritage Cablevision v. New Albany Elec. Power System of City of New Albany, 646 So.2d 1305, 1313 (Miss. 1994) (quoting Osborne v. Bullins, 549 So.2d 1337, 1339 (Miss. 1989)). Moreover, [t]he familiar public policy in this State is that courts must interpret the terms of an insurance policy (and the statutes from which they derive) liberally in favor of providing coverage for the insured. Aetna Cas. and Sur. Co. v. Williams, 623 So.2d 1005, 1008 (Miss. 1993). Undisputedly, the schedule shows that Billy bought level insurance and that his amount of insurance was $26,100.90. Under the definition of level insurance in the certificate of insurance, neither the premium amount nor the Term of Ins.  Months entry is relevant to the calculation of death benefits. Therefore, Gulf Guaranty's arguments on this point are specious. The contract indicates that Billy's coverage was to be level for the amount of insurance of $26,100.90, which would entitle Tammy to the remaining death benefits she seeks to recover.