Chicago Life Insurance v. Warner

Citations

• 80 Ill. 410

Syllabus

<p>1. Insurance—waiver of condition for forfeiture. A condition in a policy of life insurance, that it shall be void if the annual premium is not paid on or before the time specified, being one for the benefit of the insurance company, may be waived by it, and if waived, the policy will not become void on non-payment at the day specified, and may be enforced.</p> <p>3. Same—when company estopped from insisting on forfeiture. If the practice of an insurance ‘company, and its course of dealing with the insured, and others known to the insured, has been such as to induce a belief that so much of the contract as provides for a forfeiture in a certain event, will not be insisted on, the company will not be allowed to set up such forfeiture as against one in whom their conduct has induced such belief.</p> <p>3. Where-a policy of life insurance required payment of the annual premium on June 38th, of each year of the life of the insured, and provided for a forfeiture in case of non-payment on or before the day named, and on June 1 the insured was notified that he would be entitled to a dividend of $6.40, on the 38th, and the insured died on the 39th, without payment being made of the balance of the annual premium, and on July 3 the company wrote the insured that the premium fell due on the 38th, and if he wished to continue the policy, to remit the amount thereof by return mail: Held, that this showed that no forfeiture had been declared up to that time, and was a waiver of the forfeiture, and the balance of the premium being tendered in a few days after this notice, the company was liable on the policy.</p> <p>4. Same—right to add dividend. Where a dividend is declared in favor of one whose life is insured, the same payable at the same time with the next annual premium, if the premium is not paid, the company will have the right to apply such dividend in part payment of the premium, but not to add the same to the amount of the policy, without the express assent of the assu