Evans v. Holly Corp.

Opinion

BROWN (Gerald), P. J.

Eva Evans appeals from a summary judgment in favor of defendant Continental Assurance Company and a judgment she take nothing from defendant Holly Corporation after the court sustained its demurrer to her third amended complaint without leave to amend. We have consolidated her separate appeals from the two judgments.

On April 8, 1965, plaintiff and her husband purchased two parcels of land in the Saltón Sea area from defendant Holly Corporation. About six weeks later, plaintiff and her husband purchased a third parcel of land in the same area from Holly. The three purchase agreements each provided for periodic payments to Holly. Holly agreed to furnish credit life insurance insuring the life of plaintiff’s husband for the unpaid balance due on the purchase agreements. Three insurance certificates, one for each of the purchases, were given to plaintiff and her husband.

The insurance certificates each recited defendant Continental insured the life of plaintiff’s husband under a master policy issued to Holly and agreed to pay an amount of insurance equal to the balance owed on the date of his death. Each certificate contained a limitation “in no event shall the aggregate amount of all such insurance on the life of any Debtor exceed” the amount of $7,500. A schedule toward the bottom of each certificate listed plaintiff’s husband as the “Debtor,” showed a separate and different account number for each certificate and set forth the initial amount of insurance.

The initial amounts of insurance specified on the certificates relating to the two April 8 purchases were for $6,990 and $3,190, or a total initial insurance of $10,180 effective on that date. The certificate issued on the third purchase lists the maximum of $7,500 as the initial amount of insurance.

Plaintiff’s husband died on March 18, 1967. At that time the balance owing on the two April 8, 1965 purchases were in the amounts of $5,657.04 and $2,520.69. The third purchase balance was $7,216.56. Holly and

[1023]

Continental took the position the maximum amount payable under the policy was limited by the limitation provision in the certificates to a total of $7,500 on all three certificates for all three purchases. They credited $7,500 to the unpaid balances due under the purchase agreements and refused to pay off the balance owing over that sum.