Speath v. Merchants' Life Insurance

In March, 1925, plaintiff’s husband applied to defendant for a policy of life insurance. In the application and inedical report he represented that he did not use intoxicating liquors and had not been drunk within three years. A policy for $5,000 was issued by defendant, with plaintiff as beneficiary. Mr. Speath died December 5, 1926. Defendant, receiving information that his personal habits had not been as represented, sent its general counsel to see plaintiff on January 12, 1927. After some negotiations a settlement was reached, reduced to writing and executed by. plaintiff, under which…