Knapp v. Homeopathic Mutual Life Insurance

Citations

• 117 U.S. 411
• 6 S. Ct. 807
• 29 L. Ed. 960
• 1886 U.S. LEXIS 1859

Syllabus

<p>A policy of insurance, made to a wife on the life of her husband, contained this clause: “This policy of insurance, after two annual premiums shall have been paid thereon, shall not be forfeited or become void by reason of the nonpayment of premiums; but the party insured shall be entitled to. have it continued in force for a period to be determined as follows, to wit: The net value of the policy when the'premium becomes due and is not paid shall be ascertained according to the combined experience or actuaries’ rate of mortality, with interest at four per cent, per annum. Four fifths of such net value shall be considered as a net single premium of temporary insurance, and the term for which it will insure shall be determined according to the age of the party at the time of the lapse of premium, and the assumption of mortality and interest aforesaid; or at his option may receive a paid up policy for the full amount of premium paid : Provided, That unless this policy shall be surrendered and such paid up policy shall be applied for within ninety days after such nonpayment of premium as aforesaid, then this policy shall be void and of no effect. ” Held, that the words “paid up policy,” in the proviso, included an insurance for the amount of the original policy for a time computed according to its. net value at the time of the failure to pay a premium, as well as an insurance, for the term of the original policy for an amount computed according to the premiums paid; and that the wife was not entitled to have the policy continued or renewed in either form, without surrendering it and applying for a new policy within ninety days after the nonpayment of a premium. Held, also, that the rights of the parties were not affected by the husband having procured a cancellation of the original policy by fraudulently repre- ■ senting that the wife was dead.</p>