Summary
The court considered whether Ivey became totally and permanently disabled during the life of his World War I war-risk insurance policy. It held that the evidence did not establish a permanent disability by August 1, 1919, particularly because his hyperthyroidism was potentially curable, and reversed the judgment entered in his favor.
Topics
Practice areas
Questions Presented
- Whether Ivey proved that, by August 1, 1919, he had a disability making it impossible for him to follow continuously any substantially gainful occupation.
- Whether Ivey proved that the disability was founded on conditions reasonably certain to continue throughout his life, thereby satisfying the policy's total-and-permanent-disability requirement.
Holdings
- Ivey failed to prove that, on August 1, 1919, he was totally and permanently disabled within the meaning of the policy. His loss of an arm established only a partial permanent disability, and the evidence did not substantially establish that his other conditions were permanent at that time.
- An insured suffering from a curable disease cannot, through neglect or inaction, allow the disease to progress to an incurable stage and then claim that the resulting disability was permanent from its inception without proof that it was permanent at the relevant policy date.
Key quotations
“The test is whether Ivey, on August I, 1919, had a disability which rendered it impossible for him to follow continuously any substantially gainful occupation, founded on conditions which indicated with reasonable certainty that such impairment would continue throughout his life.” (654)
“An insured who is suffering from a curable disease cannot through Ms own neglect and inaction permit the disease to progress to the incurable stage, and then assert a liability on his insurance contract on the ground that the disability was permanent at its inception, without some proof thereof.” (654)
Factual background
Ivey served in the Army from January 31, 1918, until June 6, 1919, and held a $10,000 war risk insurance policy that lapsed on August 1, 1919, unless he had become totally and permanently disabled before that date. He suffered shrapnel and gas injuries during service, including a serious wrist injury that resulted in partial amputation of his arm. After discharge, he performed limited farming and store work but experienced shortness of breath and choking with exertion. His medical expert attributed those symptoms to contraction of the lungs, hyperthyroidism, and an enlarged heart, but did not provide substantial evidence that the conditions were permanent as of August 1, 1919.
Procedural history
The trial court waived a jury and tried the action to the court. At the close of the evidence, the government moved for judgment on the ground that Ivey had not proved total and permanent disability during the policy period; the motion was denied and judgment was entered for Ivey. The Tenth Circuit reversed because the evidence did not establish permanent disability by August 1, 1919.