The Canada Life Assurance Company, a Corporation v. Charlotte S. Houston

1. Statement of the Case

This action to collect the proceeds of a life insurance policy was commenced by the appellee against the appellant in the Superior Court of Alameda County, California, on January 4, 1955. On petition of the appellant, the suit was removed to the Court below. The case was tried without a jury before Chief Judge Roche, whose Memorandum Opinion is reported in 137 F.Supp. 583 .

The Court below awarded the ap-pellee a judgment for $28,552, with interest at 7% from May 4, 1954, the date on which the proof of loss and claim were filed with the appellant.

From that judgment, which was signed on February 8, 1956, an appeal was taken on March 6, 1956.

2. Statement of Facts

On September 24, 1953, William Mark Houston, United States manager for three insurance companies, of which the New Zealand Insurance Company was the “prime employer”, made written application for a $10,000 life insurance policy, subject to a “family income” provision. The policy was issued on November 3, 1953, at which time Houston was a resident of Berkeley, California.

Houston’s application stated that he used “alcoholic stimulants” “socially only occasionally”, and to the question, “Have…