University:
University of North Georgia
Course:
CRJU 4150 | Law & Society
Academic year:

2023
Views:

222

Pages:

2
Author:

A Powell

The United States Life Insurance Company in the City of New York v. Wilson I. Facts Elizabeth Wilson(plaintiff) sued the United States Life Insurance Company in the City of New York(defendant) for breach of contract. Ms. Wilson’s husband Dr. John G. Griffith purchased a life insurance policy written by US Life. Under the policy, Dr. Griffith was to make payments every six months for a ten-year term. Griffith had been making his payments on time until May of 2007. He was given a “Reminder Notice” that gave him no later than 60 days to pay the missed payment and then when he missed the 60 days, he received a “Lapse Notice” which informed him that he needed to reinstate the policy if he wanted maintain the insurance. Griffith logged onto his bank and paid the payment within the 60-day grace period and then died a few days after this. Ms. Wilson attempted to submit a claim on the life insurance policy, but AMAIA denied the claim. II. Judgment The United States Life Insurance Company in the City of New York is liable. III. Legal Principle A. Issue Whether a mailed acceptance of an offer is effective when it is delivered rather than received. B. Holding Yes. IV. Reasoning A. General Analysis In contract law, a valid acceptance is an agreement to the terms established by the offeror. In order to determine if an offeree accepted an offer, it must meet three different elements. The offeree must intend to enter the contract, the offeree must have accepted on the exact terms proposed by the offeror, and the offeree must communicate his acceptance to the offeror. In certain cases, where an acceptance is accepted through mail, a mailbox rule is implemented. The rule states that when an acceptance is sent through the mail, it is effective when it is delivered, not when it is received. B. Applied Analysis In this case, Dr. Griffith intending to enter the contract by deciding to purchase a life insurance policy under the United States Life Insurance Company in the City of New York. He accepted the original terms that states that the policy could be reinstated within 90 days of the due date of the first missed premium, not the terms that stated that he only has 60 days. Dr. Griffith communicated his acceptance to the insurance company by paying his first payment. This payment was delivered before Griffith died, therefore, by the mailbox rule, it was effective by the time he died.

The United States Life Insurance Company

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