Return of Premiums Claimed by Widow

Sun (Auckland), Volume II, Issue 357, 18 May 1928, Page 1

Return of Premiums Claimed by Widow

POLICY FRAUD ALLEGED JUDGE CRITICISES COMPANY (Special to THB SUN) NEW PLYMOUTH, Thursday. “Apart from the merits of the case, I cannot help feeling that it is surprising that a company like Colonial Mutual Life should seek to enforce a policy in such circumstances.” Tbis was the opinion of Mr. Justice Reed in the Supreme Court this morning, when Agnes Octavia Bone-Hicks, Hawera (Mr. North) claimed £ll3 8d from the Colonial Mutual Life Assurance Company (Mr. Quilliam), toing premium paid to that company. It waa alleged that agents of the toipany on October 25, 1927, sugIjetteu to Robert Hicks, husband of P**intiit, that ho rhould take out a policy to protect his estate *?.]“* family. When the question ms age was raised and he said he *** nearly 7 , he suggested the premwould be prohibitive. The agents ™ Policy could be taken on Mrs. Meta s life. They were aware she younger than her Counsel said this was represented as X *2 ec * a i policy, and the agents said ■c would make no difference to its if it was taken in Mrs. Hicks’s A proposal form was signed r Plaintiff for a policy covering approximately the amount of death and duties on the estate of Mr. lYy* he P r °Posal was accepted company and the premium ffJJ* xt was submitted plaintiff was aueed :o sign the proposal and enter Aat J? 6 contract on repr entations the policy would provide for the •Went of death duties on the estate a. ~ r - Hicks. Counsel pointed out J* 1 a policy in Mrs. Hicks’s name was _ no value, because she had no pri•ate estate. 4 n*H Ut OVPmli>er 22 plaintiff received *• cy . from the company and on n? i. ■* discovered that although it *** a. “p.'Obate policy,” it contained no , ®r®PCfi to moneys being available 's“® layment of death duties on her mw* ll ” 3 estate or any indication that <An? eys '’ ould so available. In conhA enC€> notice was given to Coaipany rescinding the contract afnr. aS,Clns * or *he re turn of the preCounsel said that under « will of Mr. Hicks, his wife was to annu ity and it would take prac- ... J a-third of that annuity to keep ne premiums under this policy. onop expressed surprise *k!\.V ompar, y of the standing of x ° e '*ndants should seek to en°rc.e , a policy taken out under a Mistake. some ngotiations the n P^ ace « but in the absence of Traditional withdrawal of the traud. which was the founda!Nere n c^a^m * ttto company felt their *, - USt be corr *plete clearance of *‘as a *j ents ’ as such a thing as this of Hwi ngerous weapon in :he hands companies. had h,L 0rt k said that if the premium n iisrer»^ n re turned, the allegation of keen vLw»^, nta^°n would no doubt have ■^withdrawn. , evi dence of Hicks and the Save u. L been beard, Mr. Quilliam *ntatin° mplete denial of any misreprebeen He said there had never Air. » pr °Posal for insurance on Uon 4 8 bfe, and the whole proposiJife, th fOF a polic y on Mrs. Hicks’s hav* thl ageuts assuming she would i£j. rf esti ite w hen her husband died, k Wai n? 01, a eain interposed and said Hr. ana from their evidence that tc be , Mrs \ Hicks each believed this ''Quid k*. Bpecial of policy, which frv» Paya ble on the death of Mr. <hxtie s * -ri-Jf Purpose of meeting death *nd f o i,«lv hen the y read the policy onro Una no such provision they n °t Und< r> r t PUd * ated It, and he could to enfor such a. company trying v ould u e * he . policy. He thought it much better if the matter

could be arranged without the necessity of the Court giving judgment. Mr. Quilliam said he would have to communicate with Wellington, and m view of his Honor’s intimation, he asked that the matter should stand over until to-morrow. This course was agreed .to.