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GIVES DECISION IN ACTION AGAINST MELVIN REITE IN INSURANCE CASEPermission for the Prudential Life Insurance company to cancel two policies carried by Melvin H. Hcitz, Galena, and totaling $30,000 was granted in a decision handed down In federal court this week by Judge Charles E. Woodward. The company, in its petition for cancellation, alleged the policyholder with-T.lheld certain vital informal'.! concerning his physical condition when the original applications io^pollcies were signed in 1930 and hence that the policies were fraudulently obtained. It was indicated by attorneys representing the Jo Daviess county man that the ruling of the court would be carried to the United States circuit court of appeals. The court held that misrepresentations made in original application voided the policies.The action was heard in federal court here last March by Judge Woodward. Reitz sought to obtain an annuity of $3,600, provided for in policies in the event of physical disability and following his efforts to collect the company filed an action seeking to cancel the policies and return to Reitz the amount of premiums paid to the company.The hearing continued several days, Judge Woodward instructed attorneys to submit briefs and has now given his decision in the matter, which attracted considerable attention throughout the United States, especially with insurance companies.It was disclosed at the hearing that insurance companies have a central clearing house where all information is filed regarding policy holders and applicants from all companies, this information being available for all companies throughout the United States connected with this clearing house.According to attorneys for the insurance company, at the time of the hearing, it was said Reitz made numerous misrepresentations regarding his health and about one year after the contracts had been signed sought to collect as a result of an alleged sinus infection, which he claimed incapacitated him fcr work as a construction companysuperintendent.The defense contended Reitz was but 22 years of age at the time application for policies was made, was not versed in the matters of insurance and that agents of the company practically dictated questions and answers contained in the application and heVice the defendant was not responsible if the ... answers showed misrepresentations. MJU
Newspaper Details
Freeport Journal Standard
Freeport, Illinois, US
Sat, Jul 13, 1935
Page 1
Full Page
Clipped by
Karen K.
MO, USA 20 Jun 2019
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