Court Opinion

ID: 9473940
Source: CourtListenerOpinion
Date Created: 2023-08-05 04:44:03.370535+00
Date Added: 2024-06-11T17:43:49.743377
License: Public Domain

DUMBAULD, District Judge,
concurring:
It is clear that under the terms of the conditional receipt issued by the insurance company in the case at bar the coverage becomes effective upon completion of the medical examination only “if in the opinion of the authorized officer of the company at its home office the proposed insured is acceptable” under company standards.
This creates an awkward situation if the proposed insured dies before the officer at the home office has had an opportunity to make the requisite determination as to acceptability.
It would be difficult for the officer to find that the applicant “is acceptable” if he is already dead. The temptation is obvious for the officer to determine that the applicant is unacceptable, or simply to make no determination at all.
It may be that fairness would require that the officer, disregarding hindsight, must promulgate a bona fide determination as to what his determination would have been at the time of completion of the physical examination if he had had the opportunity to act upon the matter at that time.
Establishment of such a rule, however, is a matter for consideration by the legislature. The courts must give effect to the wording of the conditional receipt as it is written. Proper interpretation of its terms shows that the coverage never became effective. The judgment of the District Court in favor of the insurance company must be affirmed.