Coe

Plaintiff Marietta S. Coe (Mrs. Coe) brought suit to recover the proceeds of a life insurance policy on the life of her husband, Lewis R. Coe (Coe). She joined as defendants not only the insurance company (Farmers) but also the agent who sold the policy (Hannify). Her amended complaint stated causes of action for breach of contract and negligent and intentional torts. The trial court granted both defendants’ motions for summary judgment, as to all causes of action.

The essential facts of the case are undisputed. Coe purchased a $50,000 policy on his life on February 10, 1983. Premiums were paid monthly in accordance with an automatic deduction plan from his checking account. The policy provided for a “grace period” as follows: “Grace Period —If premiums are not paid when due, your policy will continue in force for an additional 31 days. If your premium is unpaid at the end of this grace period, your policy will be void except as provided in the Guaranteed Values section. If you should die during the Grace Period, a monthly premium will be deducted from the proceeds.”

In February of 1984 Coe’s employment changed, causing him to conclude he had no further need for the…