Knickerbocker Life Insurance v. Harlan

Citations

• 56 Miss. 512

Syllabus

<p>Insurance. Paid-up policy. Conditioned upon payment of interest on a note. Forfeiture by default.</p> <p>H. surrendered a $5,000 policy of life insurance, and accepted what was called “a paid-up policy” for $2,000, and at the same time executed his promissory note, in the form of a receipt for a loan, for $624, the amount of the credit portion of the premiums on the original policy. The new policy stipulated that the amount of the npte was to he deducted, after the death of the insured, from the sum thereby assured. And it recited that it was issued in consideration of the surrender of the original policy, of the representations made in obtaining the same, “ and of the payment of the interest annually on the notes or credits given for premiums on the policy surrendered (which notes or credits, amounting to $624, are now charged against this policy), on or before the 27th of September in each year.” The second condition of the new policy was, that “ if the interest on said $624 note or credit shall not be paid on or before the day mentioned, the company shall not be liable to pay the sum assured, or any part thereof, and said policy shall cease and determine, and become null and void, without notice to any party or parties interested.” Held, that, by these stipulations and conditions, a default in the payment of the interest on the consolidated note operates a forfeiture of the policy.</p>