VEREEN v. LIBERTY LIFE INSURANCE CO.
5/13/1991
Decided May 13, 1991.
These statutory
Viewed in the light most favorable to Liberty Life, the facts are as follows. Martin had been an insurance agent for
Deliberately disregarding his instructions, Martin went to Canteen's house in January, 1985, where he filled out an application for insurance on Vereen's life using information supplied by Canteen and known by Martin to be false. Among other things, the application falsely named Vereen as the applicant for and owner of the policy. It also named as the beneficiary a fictitious nephew of Vereen. The fictitious beneficiary was used after Martin told Canteen he was forbidden to write any more insurance with Canteen as the beneficiary. Martin later admitted he lied on the application by stating that he had known Vereen for three years and by swearing as a witness to Vereen's signature. He also confessed he fabricated stories to Liberty about the policy out of fear of losing his job .
In consequence of Martin's active deceit and concealment, Liberty issued a policy upon the life of Michael Vereen, although Vereen had not sought insurance and, in fact, was unknown to Martin. Canteen paid the policy premiums to Martin. Vereen never knew of the issuance of the policy.
Exactly three months after Martin and Canteen completed the falsified life insurance application, Vereen's body was found in a wooded area with a shotgun blast to the chest. Canteen supplied Martin with Vereen's death certificate and Martin requested payment of benefits for Vereen's supposed beneficiary, the fictitious nephew. Upon receiving the check from Liberty Life, Martin delivered it to Canteen. Canteen and a confederate pretending to be Vereen's nephew cashed the check at a bank where Martin knew and had introduced Canteen to the branch manager. Canteen thereafter gave Martin a cashier's check for $9,500.00
An investigation of the murder led authorities to Canteen, who was indicted for procuring Vereen's murder for the purpose of collecting the insurance proceeds from Liberty Life. Canteen pleaded guilty and was sentenced to life in prison as
This case presents a classic, though tragic, illustration of why the law prohibits issuing policies on the life of a person without his knowledge or consent. See Ramey v. Carolina Life Insurance Co., 244 S.C. 16, 25, 135 S.E.2d 362, 366-67 (1964). A life insurance policy issued in favor of a beneficiary who has no relationship to the insured places the life of the insured at risk; it gives the beneficiary a pecuniary interest in seeing that the innocent insured dies.
I.
Although Vereen's representatives do not contend Liberty Life knowingly issued the policy without Vereen's consent, they assert the doctrine of respondent superior required the trial judge to hold Liberty Life liable for the death of Michael Vereen as a matter of law. They note that Liberty Life admitted Martin was its agent. They then argue that: (1) Liberty Life put up no evidence that Martin was not acting within the "apparent scope" of his agency; (2) Martin could not have procured, delivered, and kept in effect the policy on Vereen's life except for the fact that Liberty Life clothed him with "apparent authority" to do so; and (3) Martin was acting within the scope of his employment when he issued the policy on Vereen's life.
The first argument is manifestly without merit. The fact that Liberty Life put up no evidence as to the scope of Martin's agency does not entitle Vereen's representatives to a directed verdict or judgment notwithstanding the verdict. As the plaintiffs and the parties alleging "apparent authority," the representatives had the burden of product
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