Ethel M. Bekken v. Equitable Life

The plaintiff is the widow of Oscar H. Bekken, and the administratrix of his estate. Bekken was killed in an automobile accident
on June 26th, 1934, without any fault on his part. On June 1st preceding his death, he had made written application to the
defendant for insurance on his life in the sum of $2,000 payable to his wife, the plaintiff; but the defendant failed to accept
or to reject the application, and, in this action, plaintiff seeks to recover from the defendant damages in the amount of
$2,000. In the complaint it is alleged that the plaintiff is the administratrix of the estate of Oscar H. Bekken, deceased; that
the defendant is a foreign corporation authorized to do life insurance business in North Dakota; that during the month of
April, 1933, Oscar H. Bekken applied to the defendant, through its agent Sundahl, for insurance upon his life in the sum of
$2,000; that he was examined by the defendant's physicians and found to be in good health and was approved and accepted as
an insurable risk and that defendant thereupon issued an ordinary life policy taking effect May 3d, 1935, preceded by a two-year
term policy taking effect May 3d, 1933, and continuing in force upon the payment of premiums until the ordinary life insurance
policy became effective May 3d, 1935; that the said two-year term policy was put into effect but that about the first of the
year 1934 it was declared lapsed by the defendant company for nonpayment of premiums; that soon after said Bekken became aware
that said policy had lapsed he applied to the defendant company for reinstatement or for a new policy and that on or about
June 1st, 1934, at the instance and upon the advice of said defendant's agent he made application for a new policy; that said
application was prepared by Sundahl, said agent of said defendant company, and contained the following provision: "I have
paid to Halvor H. Sundahl (the soliciting agent for defendant) $8.26 to cover the first quarterly premium on the policy applied
for above, in accordance with the provisions of the receipt of date and number corresponding to this application, which I
hereby accept, and agree to the conditions thereof;" that the receipt referred to in said application was as follows: