Leeta A. Lloyd v. The Franklin Life Insurance Company, a Corporation

The beneficiary of a life insurance policy on the life of Warren William Lloyd, which contains in two different places the declaration, “First Policy Year Begins: January 1, 1953,” brought action against The Franklin Insurance Company for the proceeds, after the death of Lloyd by suicide on December 21, 1954. The defense was that the effective date of issue of the policy was fixed, in accordance with a special request of Lloyd, at January 1, 1953, and that the policy issued contained a clause that, if “within two years from date of issue the Insured * * * shall die by self-destruction, the liability of the Company shall be restricted to the amount of premiums paid hereon.” Cross-motions for summary judgment were filed. Based upon the pleadings, admissions, depositions and affidavits and all other documents on file, the trial court entered summary judgment for the Company.

The beneficiary did not object to the submission of the matter to the court on the cross-motions for summary judgment. After judgment was rendered for the Company, however, she made a motion to vacate judgment on the ground that there were material questions of fact unresolved. If this Court on appeal had found…

I dissent.

The facts before us are relatively simple. On December 6, 1952, Warren W. Lloyd signed an application for life insurance from appellee insurer on a form provided by the latter. Item 25 on the application form read: “Use this space for special requests.” Filled in thereunder was the following: “Date Policy Jan. 1, 1953.”

At the time Lloyd executed the application (December 6, 1952) he gave the insurer his note for $12.57 to' pay the first month’s premium. At the same time the insurer gave Lloyd a receipt for this payment on a form which it had prepared. The following statement appeared on the application form:

The insurer subsequently issued Lloyd its policy No. 1127042. In the policy it was stated that the “first policy year” began January 1, 1953, and that the policy had been “executed” January 5, 1953. The policy contained the following provision:

Sometime in January of 1953 the insurer delivered the policy to Lloyd. At that time Lloyd decided to pay the premiums quarterly instead of monthly, so he gave the insurer $36.04 to cover the period from January 1 to March 31,1953. The insurer then either returned to Lloyd or destroyed the note for $12.57.

On December…

245 F.2d 896 Leeta A. LLOYD, Appellant, v. The FRANKLIN LIFE INSURANCE COMPANY, a Corporation, Appellee. No. 15142. United States Court of Appeals Ninth Circuit. April 25, 1957. Neil Cunningham, San Francisco, Cal., C. W. Ricketts, Los Gatos, Cal., for appellant. McCutchen, Thomas, Matthew, Griffiths & Greene, and Morris M. Doyle, Arthur R. Albrecht, San Francisco, Cal., for appellee. Before HEALY, LEMMON and FEE, Circuit Judges. JAMES ALGER FEE, Circuit Judge. 1 The beneficiary of a life insurance policy on the life of Warren William Lloyd, which contains in two different places the declaration, "First Policy Year Begins: January 1, 1953," brought action against The Franklin Insurance Company for the proceeds, after the death of Lloyd by suicide on December 21, 1954. The defense was that the effective date of issue of the policy was fixed, in accordance with a special request of Lloyd, at January 1, 1953, and that the policy issued contained a clause that, if "within two years from date of issue the Insured * * * shall die by self-destruction, the liability of the Company shall be restricted to the amount of premiums paid hereon." Cross-motions for summary judgment were…