Zogg v. Penn Mutual Life Ins. Co‪.‬

Before: CLARK, HINCKS and WATERMAN, Circuit Judges. CLARK, C. J.: This is an appeal from a plaintiff's judgment in an action by the beneficiary to recover the face amount of a policy of life insurance issued by defendant. The insured, a resident of New York, applied for the policy and paid the first premium thereon in Massachusetts. But there was conflicting evidence as to whether the policy had been delivered to the insured in Massachusetts or had been mailed to his residence in New York. A provision of the policy limited death benefits to a return of premiums in the event of the insured's suicide, while sane or insane, within two years of the date of issue. Since the insured did so commit suicide, the only question involves the effectiveness of the limitation. The court below applied § 155 of the N.Y. Insurance Law,1 which has been interpreted as rendering the restriction void where the insured commits suicide while insane. Franklin v. John Hancock Mut. Life Ins. Co., 298 N.Y. 81, 80 N.E. 2d 746. The case was submitted to the jury for a verdict upon special interrogatories, and it was found that the policy had been mailed to the insured in New York and that the insured had been insured had been insane at the time he committed suicide.2 Judgment for plaintiff was directed to be entered upon this verdict.