Hoover v. Travelers Insurance

ASHBURN, J. Plaintiff, Patricia Ann Hoover, sues upon a life insurance certificate, Number 555-26-9954, issued to her husband, Thomas P. Hoover, pursuant to a group life insurance policy issued by defendant, The Travelers Insurance Company to The National Elevator Industry Welfare Plan under declaration of trust of May 19, 1952. Such policies are authorized by Insurance Code, section 10202.81 and related [363]sections. Plaintiff appeals from judgment for defendant insurance company.

The following allegations of the complaint are admitted: “I. That at all times herein mentioned defendant was and is a corporation . . . authorized to and doing business in the City and County of Los Angeles, State of California, within the jurisdiction of the above-entitled Court. II. That on or about October 22, 1956, defendant made and issued its Certificate No. 555-26-9954 to Thomas F. Hoover for a valuable consideration; that said certificate provided that subject to the terms, conditions, and provisions of Group Life Policy No. G 15385 issued and delivered to The National Elevator Industry Welfare Plan, defendant would pay the sum of $3,500.00 to the beneficiary designated by the said Thomas F. Hoover. III. Said certificate further provided that Patricia Ann Hoover, plaintiff herein, was and is the designated beneficiary. ’ ’

Counsel have stipulated2 that Hoover was employed by Otis Elevator Company on October 22, 1956, and terminated that employment on January 18, 1957; that he died on January 27, 1957. It was conceded by defendant at the trial that the fact of termination of employment nine days prior to his death would not affect the existence of insurance upon his life to such date of death if in fact there had been any existing insurance on the 18th. This concession was based upon the “grace period” provided by section 6, article VII of the base policy.

That policy provides: “The Company will issue to the Trustees for delivery to each Employee whose life is insured hereunder an individual certificate setting forth a statement as to the insurance protection to which he is entitled, including any change in such protection depending on the age of the insured Employee, to whom the benefits hereunder shall be payable, and the rights to which the Employee is entitled under the provisions of Article VI—Conversion Privilege.” (Art. IX, § 1.)

The certificate thus issued to Hoover says: “This individual [364]