Universal Life Ins. v. Davis

Universal Life Insurance Company issued a life policy to David Stone on May 26, 1947. He died May 9, 1949. Lula Clanton, his mother, the beneficiary, died June 24, 1949, before collecting the proceeds. But Will Davis, a son of Lula, and a half-brother of David, by will, inherited the right to the proceeds.

The face amount of the policy was $368; but there was a provision that, if death resulted from disease of the heart within two years from the date of the policy, the insurer’s liability would be reduced to one-fourth of the principal amount, that is, $92.

Suit was filed by Will Davis. By…