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Wallach v. Monarch Life Ins. Co.

Supreme Court, Appellate Term, First Department
Aug 7, 1969
74 Misc. 2d 369 (N.Y. App. Term 1969)

Summary

In Wallach, 345 N.Y.S.2d at 1020, the insurance policy contained an accident clause quite similar to the one in Fuller's policy.

Summary of this case from Fuller v. Mass. Indem. and Life Ins. Co.

Opinion

August 7, 1969

Appeal from the Civil Court of the City of New York, County of New York, ALLEN MURRAY MYERS, J.

Moses Singer ( Arnold A. Jaffe and Robert I. Edlitz of counsel), for appellant.

Casey, Lane Mittendorf ( William E. Kelly, Stuart D. Ludlum, Jr., and Pamela B. Lane of counsel), for respondent.


This major medical policy covered loss resulting from (1) sickness contracted or commencing while the policy was in force or (2) bodily injuries caused by an accident occurring while the policy was in force. It contained a clause limiting to $1,600 the maximum payable for any one continuous period of treatment of mental disease or deficiencies.

A "sickness", of course, can have its origin in a weakness, defect or condition existing long before the issuance of the policy. A "bodily injury", however, must be caused by an accident, an objective event, occurring while the policy is in force.

In Prince v. United States Life Ins. Co. in City of N.Y. ( 42 Misc.2d 410, affd. 23 A.D.2d 723, affd. 17 N.Y.2d 742) it was held that psychiatric treatment resulting from a "bodily injury" caused by an accident occurring while the policy was in force was not subject to the monetary limitation for treatment of mental disease or deficiencies but was a fully covered loss. Thus, the monetary limitation was deemed applicable to treatment of mental disease or deficiencies only when viewed as a mental disorder unconnected with bodily injury, that is, a "sickness".

Here, even assuming that plaintiff can prove his theory that his son's condition resulted from brain damage and brain injury at birth several years before the issuance of this policy, there could be no recovery on the ground of "bodily injury", since the accident, under such assumed state of facts, did not occur while the policy was in force. Recovery could be had only by viewing his condition as a "sickness". But, as a mental sickness, its treatment falls within the $1,600 monetary limitation and that is what defendant did pay.

The two-year incontestability clause merely serves to prevent such claim from being denied or reduced on the ground of pre-existence of the condition, but it does not affect a limitation provision, otherwise applicable. Here the claim was not denied; and was reduced, not on the ground of pre-existence of the condition, but because of the limitation clause. Defendant did not contest the claim but paid it subject to the limitation provided for treatment of such condition. Defendant's motion for summary judgment was properly granted.

The orders should be affirmed, with $10 costs.

Concur — GOLD, J.P., HOFSTADTER and STREIT, JJ.

Orders affirmed, etc.


Summaries of

Wallach v. Monarch Life Ins. Co.

Supreme Court, Appellate Term, First Department
Aug 7, 1969
74 Misc. 2d 369 (N.Y. App. Term 1969)

In Wallach, 345 N.Y.S.2d at 1020, the insurance policy contained an accident clause quite similar to the one in Fuller's policy.

Summary of this case from Fuller v. Mass. Indem. and Life Ins. Co.
Case details for

Wallach v. Monarch Life Ins. Co.

Case Details

Full title:KARL E. WALLACH, Appellant, v. MONARCH LIFE INSURANCE COMPANY, Respondent

Court:Supreme Court, Appellate Term, First Department

Date published: Aug 7, 1969

Citations

74 Misc. 2d 369 (N.Y. App. Term 1969)
345 N.Y.S.2d 1020

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