Gaskill v. Pittsburgh Life & Trust Co.

Citations

• 261 Pa. 546
• 104 A. 775
• 1918 Pa. LEXIS 788

Syllabus

<p>Insurance — Life insurance — Payment of premium after date due —Acceptance■—Declaration of forfeiture — Gontract—Rescission— Improper rescission — Cancellation—Waiver—Action for premium paid — Measure of damages — V.alue of insurance furnished.</p> <p>1. One holding a policy in an insurance company which wrongfully revokes the policy may elect whether to enforce the contract or treat it as rescinded and recover for the breach, and if he. takes the latter course he may recover back the full amount of the premiums paid thereon with interest, without deduction for the protection afforded the assured while the policy was in effect.</p> <p>2. In an action by a policy holder against a life insurance company for the recovery of premiums paid on a policy, it appeared that plaintiff, had for a period of eighteen years, paid premiums regularly as they fell due; that thereafter on a date on which a premium fell due he paid part of such premium and for the balance gave a note payable on March 15th, providing in such note that “if not paid .at maturity, all claims to further insurance, and all benefits whatever, which full payment in cash could have secured, shall immediately become void and he forfeited”; that plaintiff did not give his check in payment of such note until March 17th; that defendant received and deposited the check, and on March 20th it was duly paid; that the following day plaintiff received a letter from the defendant stating that “the policy has lapsed for nonpayment of this note when due,” and “we have credited your remittance in suspense,” and “before we can consider reinstatement of [the policy] it will he necessary for you to fill out, sign and return enclosed self-health certificate.” Plaintiff complied with' this request and three days later defendant notified him that the certificate was not sufficient and directed him to submit himself for an examination by two designated physicians. After such examination plaintiff mailed the required certificate