Opinion ID: 2040221
Heading Depth: 1
Heading Rank: 2

Heading: warrant date/payroll date

Text: In the 1966 Legislative Assembly, the insurance industry prevailed upon the Legislature, and were successful, to inaugurate group life insurance policies in South Dakota. The general scheme developed was to permit group life insurance in South Dakota, but precluded any type or kind of a group policy to be issued unless it conformed with the requirements set forth by state statute. SDCL 58-16-1. SDCL 58-16-3 provided, inter alia: A policy issued to insure the employees of a public body may provide that the term `employees' shall include elected or appointed officials. On January 3, 1983, Julian Cheney, deceased, became the South Dakota Commissioner of School and Public Lands. On this date, Julian Cheney enrolled in, joined, and subscribed to the State Employees' Group Life Insurance Plan by completing an application which authorized the deduction of premiums from his paychecks. [3] Julian Cheney continued in the people's employ and on January 14, 1983, his first pay period ended and he became entitled to his salary. This is not disputed. Julian Cheney was entitled to his salary up to this point and Metropolitan Life Insurance Company had earned an insurance premium. [4] However, because of the State's payroll system, Julian Cheney would not actually receive his paycheck or warrant for nearly two weeks. [5] In the administrative hiatus between payroll earned and payroll paid, however, Julian Cheney died (January 16, 1983) and because he was not there to receive his first paycheck, the Metropolitan Life Insurance Company and the South Dakota Public Employees Insurance System seek to deny insurance coverage even though a $39.15 deduction for life insurance was withheld from this paycheck. A right to prevail is here obfuscated and lost by an administrative hiatus, namely, a gap created by the thousands of checks which must be printed for state employees. Volume and the computer world are vaulted over justice and humanity. My sense of fairness and that which was sought to be accomplished by state statuteto give all state employees and constitutional officers life insuranceregardless of their health is offended. Jus est ars boni et aequi. Law is the science of what is good and just. Because I would interpret warrant date, if indeed such a date is controlling, germane and valid to the resolve of this case, to mean the payroll ending date, I would reverse the summary judgment of the trial court. [6] See RATIONALE IV, infra, for an explanation on the invalidity of warrant date. Any ambiguity or uncertainty in an insurance contract is to be construed most strongly against the insurer and in favor of the insured. See Vern Eide Buick v. United States Fidelity & Guar. Co., 273 N.W.2d 116 (S.D.1978); Dairyland Ins. Co. v. Kluckman, 86 S.D. 694, 201 N.W.2d 209 (1972); Presentation Sisters, Inc. v. Mut. Benefit Life Ins. Co., 85 S.D. 678, 189 N.W.2d 452 (1971); Wilson v. Allstate Ins. Co., 85 S.D. 553, 186 N.W.2d 879 (1971). In the case at bar, Julian Cheney did not cause or create any ambiguity or uncertainty as to the effective date of the insurance coverage. Cheney has to be acceptedand he was accepted as an insuredonly his dying triggered a renunciation of contractual obligations imposed by state statute and the Master Policy. Therefore, any resolution of the insurance contract language should be in favor of appellant and against appellees. Such is not unnatural and can be done without resorting to a subtle and forced construction.