United States v. Smith

The suit is on a policy of war risk insurance issued to appellee’s ward, insuring against death or total permanent disability occurring during the life of the policy. 38 U.S.C.A. § 445 . The trial below resulted in a verdict and judgment against the United. States.

The insurance lapsed for nonpayment of premiums on December 31, 1919, unless on or prior to that date the insured became totally and permanently disabled within the- meaning of the statute. The *912 government’s main contention on the appeal is there was no substantial proof of total and permanent disability prior to the date mentioned.

Confessedly the insured has been so disabled since May 4, 1921, when he was committed to an asylum as a sufferer from dementia praccox. And there is evidence, including persuasive medical testimony, from which it is inferable that the insured was afflicted with the incurable malady as early as November, 1919 — at or shortly after his discharge from the service. Counsel for the government argue, however, that as of that time the evidence tends to prove no more than a predisposition to insanity, and that despite his mental condition the insured was not shown to be totally disabled…

(dissenting).

This was an action on a contract of war risk term insurance issued to appellee’s ward, Guy L. Smith, in 1918, pursuant to article 4, §§ 400-405, of the Act of September 2, 1914, c. 293, 38 Stat. 711 , as amended by § 2 of the Act of October 6, 1917, c. 105, 40 Stat. 398 . Thereby Smith was insured against death or total permanent *913 disability occurring during the life of the contract.

The contract lapsed for nonpayment of premiums on December 31, 1919, unless, on or before that date, Smith became totally and permanently disabled. There is evidence that Smith became partially disabled before December 31, 1919, and that his then partial disability eventually became total, but there is no evidence that it became total on or before December 31, 1919. On the contrary, the evidence shows that it did not become total until 1921.

The judgment should be reversed.