Martin Searle's life insurance policy contained a standard suicide clause. Under the clause, Allstate would not be liable to the beneficiary, Alice Searle, should Martin commit suicide within the first two years of the policy even if Martin were insane at the time of his death. Martin committed suicide ten months after the policy went into effect. Allstate refused to pay Alice any benefits under the policy.
Alice sued the company, claiming that her husband had been mentally deranged at the time of the suicide and did not realize the consequences of his action.
Allstate argued that the sanity clause removed the issue of mental incapacity from the case. Who would prevail in a majority of states? Explain.
Searle v. Allstate Life Insurance Company, 212 Cal. Rptr. 466 (CA).