AMERICAN HOME MUT. LIFE INS. CO.
v.
GIBSON
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American Home Mutual Life Insurance Co. appealed a judgment requiring it to pay death benefits under a life insurance policy, claiming the first premium was never paid. The Florida Supreme Court affirmed the judgment, holding that possession of the policy at the time of death creates a presumption that the premium was paid, and the insurer failed to present sufficient evidence to rebut this presumption.
Possession of an insurance policy at the time of the insured's death raises a presumption that the first premium was paid. The burden of establishing non-liability due to non-payment of the first premium rests with the insurer. Where the insurer presents legally insufficient evidence to rebut this presumption, a directed verdict for the insured's beneficiary is proper.
“possession of the policy at the time of his death by the insured raises the presumption that the first premium was paid”
Establishes the legal presumption created by possession of the policy that shifts the burden of proof regarding premium payment to the insurer.
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Join FLexlaw to unlock all legal intelligenceAmerican Home Mutual Life Insurance executed and delivered a $500 life insurance policy on Jimmie Lee James with double indemnity for accidental death…
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PATTEN, Associate Justice.
This is an appeal from Final Judgment entered in the Court below on action brought by appellee against appellant to recover under the terms of an insurance policy.
The facts succintly stated are as follows: the appellant executed and delivered to one Jimmie Lee James a policy of insurance whereby, in consideration of the payment to the appellant of the premium specified in the policy, appellant insured the life of said Jimmie Lee James in the sum of $500 with provision for double indemnity payment to the named beneficiary upon proof of death of insured and upon the surrender of the policy in the event the insured should die within 90 days from bodily injuries sustained after the effective date of the policy through external, violent and accidental means.
On August 14th insured was struck by lightning which caused immediate death. Proper proof of death and surrender of the said policy was made by appellee.
Appellant contends that it is not liable under the policy because the first premium was never paid. The Court below ruled that possession of the policy at the time of his death by the insured raises the presumption that the first premium was paid; further, that the burden of establishing non-liability on account of the failure to pay the first premium is on the appellant.
Our examination of the record convinces us that the evidence offered by the insurance company to rebut this presumption was legally insufficient to support a verdict in its favor and therefore the lower court was entirely justified in directing a verdict for the appellee. While we agree that it was a question of fact that ordinarily should have been submitted to the jury, Lamar Life Ins. Co. v. Kemp, 154 Miss. 890, 124 So. 62, because of the lack of any substantial competent evidence in this case to establish this fact — due primarily to the untimely death of both the agent and the assured shortly after the delivery of the policy- — -the lower court did not err in the course it followed. The judgment of the lower 'Court is therefore affirmed.
ROBERTS, C. J., and TERRELL and DREW, JJ., concur.
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Huff v. Standard Life Ins. Co., 683 F.2d 1363 (11th Cir. 1982)…etermination by the jury. The need for a credibility decision by the jury is further bolstered by Florida case law which appears to place the burden of rebutting the presumption of payment on the insurer. American Home Mut. Life Ins. Co. v. Gibson, 72 So. 2d 374, 375 (Fla.1954). In Gibson the Florida Supreme Court approved a ruling in which the trial court held “that possession of the policy at the time of his death by the insured raises the presumption that the first premium was paid; further, that the bur…