Class Action on Face Value of Life and or Disability Policies from 911 event

53 N.W.2d 860 (1952)

JORDON v. WESTERN STATES LIFE INS. CO.

No. 7205.

Supreme Court of North Dakota.

June 4, 1952.

*861 Sinness & Duffy, Devils Lake, for appellant.

Burnett, Bergesen, Haakenstad & Conmy, Fargo, for respondent.

Herbert G. Nilles, Fargo, and John A. Zuger, Bismarck, Amici Curiae.

BURKE, Judge.

The question in this case is whether the statute requiring an incontestability clause in all life insurance policies written in this state, and other statutes relating to life insurance contracts, have the effect, after the period of contestability has expired, of nullifying an aviation exclusion rider which has been attached to the policy.

On August 10th, 1945, the defendant company issued its policy of life insurance to Thomas Henry Jordan, agreeing to pay to Lillian Claughton Jordon, the wife of the insured, the sum of $20,000 upon the receipt by the company of due proof of the death of the insured. Attached to the policy was a rider which provided:

"Except as hereinafter provided, the Company shall be under no liability under the Policy should the death of the Insured occur:

"1. * * *

"2. * * *

"3. As a result of operating or riding in any kind of aircraft or from exposure to any hazard incident thereto (including falling or otherwise descending from or with any such aircraft) other than as a farepaying passenger of a commercial airline flying on a regularly scheduled route between definitely established airports.

"In the event the Insured's death should occur under any of the conditions defined above, the Company's liability shall be limited to the payment of a single sum equal to the greater of (a) the premiums paid on said Policy together with compound interest at the rate of 3% per annum, decreased by any indebtedness on or secured by said Policy; or (b) the reserve under said Policy decreased by any indebtedness on or secured by said Policy; but in no event shall the amount so paid be more than the amount payable if this provision were not attached."

The policy also contained an incontestability clause which provided: "Incontestability. This policy shall be incontestable after two years from date of issue (1) except for the non-payment of premiums; (2) except that part or parts of the policy, if any, relating to benefits in the event of total and permanent disability; (3) except that part or parts of the policy, if any, relating to additional insurance benefits in event of death by accidental means; (4) *862 except that part or parts of the policy relating to (a) military or naval service for any country at war and (b) aviation hazards."

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The continue of opening cases in the 1950's brings a channeling into 911 event to the point of cover of Western States Life of Fargo North Dakota a Insurance Company of Life and Disability with Annuity to attach to Decreasing Term in formation of The First Universal Life of Policy without Whole Life yet the current market with its less then 1% in interest of many Annuity cause the Policies to follow more at a whole life meaning the case involving Aviation hazards fall to the Whole life yet the annuity greater follow the annuity is accepted to decreasing Term or standard Whole life options to purchase additional Life Coverage in Western States Life in Compliance to Insurance Laws of North Dakota but Aviation hazards come forward from 911 allow the award to Western States Life as the payee of face value of said policy from Varying laws to Aviation and as such is Class action yet the annuity if greater then face value whichever is greater is paid.