U.S. Supreme Court
United States v. Madigan, 300 U.S. 500 (1937)
United States v. Madigan
Argued March 10, 1937
Decided March 29, 1937
300 U.S. 500
1. The provisions of § 305 of the World War Veterans' Act, as amended, whereby a policy which has lapsed while the insured was suffering from a compensable disability for which compensation was not collected may be revived and matured pro tanto if the insured has become permanently disabled, by applying the uncollected compensation as premiums, do not extend to an earlier policy which was converted into the one that lapsed. P. 300 U. S. 502.
2. In the congressional legislation dealing with the subject, Veterans' insurance changed from one form to another is termed "converted." P. 300 U. S. 503.
3. Neither the words nor the legislative history of § 305 of the Act suggest that the phrase "cancelled or reduced insurance" was intended to include insurance elsewhere described in the Act as "converted," at least where the conversion was not accompanied by a reduction of the policy. P. 300 U. S. 505.
4. The holder of a converted policy is not "entitled" to total disability benefits under the original policy, within the meaning of § 307 of the Act, as amended in 1930, where the total disability did not occur until after the conversion. P. 300 U. S. 506.
5. Section 307 does not, either by its terms or by reasonable implication, extend the privileges of § 305 to converted insurance. Its legislative history does not disclose any purpose to amend or to depart from the policy of § 305. P. 300 U. S. 506.
6. A construction of a new section added to an existing statute, as by implication modifying a settled construction of an earlier section, is not favored. P. 300 U. S. 506.
85 F.2d 609 reversed.
Certiorari, 299 U.S. 538, to review a judgment affirming a recovery of total disability benefits in a suit on a contract of war risk term insurance. chanroblesvirtualawlibrary