Pacific Mutual Life Insurance v. Terry

GILL, Associate Justice.

On April 1, 1901, the appellant life insurance company insured the life of A. B. Terry for $2,000, the appellees being named in the policy as beneficiaries. On October 30, 1902, the insured died and appellees made proof of the death and demanded a settlement in accordance with the terms of the policy. Payment was refused on the ground that the insured in his application for insurance had falsely answered certain inquiries propounded by the company concerning his use of alcoholic liquors. Thereupon appellees brought this suit and the company interposed the alleged…