Metropolitan Life Insurance Company v. Constance C. Wood

On January 12, 1959, appellee’s husband delivered an application for a policy of life insurance and a check for the first premium to an agent of the appellant insurance company. On January 17, 1959, he was examined by appellant’s physician; later that day he died. Appellant thereafter rejected the application and offered to return the premium payment. Appellee sued to recover as beneficiary under the policy. “The issue in this appeal,” as appellant states it, “is whether or not appellee’s deceased husband, Jean L. Wood, was insured by appellant at the time of his death.”

The determination of this issue turns on the proper interpretation of the language of the application. The same language was before this Court in Metropolitan Life Ins. Co. v. Grant, 268 F.2d 307 (9th Cir., 1959). Relying on Ransom v. Penn Mutual Life Ins. Co., 43 Cal.2d 420 , 274 P.2d 633 (1954), we there concluded that under the law of California, an applicant might reasonably construe the language to mean “pay the portion of the premium required in advance and in consideration thereof you will have protection until your application is accepted or rejected” ( 268 F.2d at 310 ). We further concluded on the basis…