Matlack v. Mutual Life Insurance

Citations

• 180 Pa. 360
• 36 A. 1082
• 1897 Pa. LEXIS 929

Syllabus

<p>Insurance — Life insurance — Accumulated dividends — Forfeiture.</p> <p>Where there were accumulated dividends on a policy of life insurance, the cash value of which was sufficient to pay premiums due, and such dividends had in the years immediately preceding, at the request of the beneficiary been applied to the payment of premiums as they became due, the insurance company had no authority to forfeit the policy for the nonpayment of the premiums.</p> <p>Insurance — Life insurance — Assignment—Forfeiture.</p> <p>A bill in equity was filed against a bank and an insurance company to compel them to account for the proceeds of a policy of life insurance. The plaintiff was the widow of the assured who died a few months before the bill was filed. The evidence showed that twenty-four years prior to the filing of the bill, the assured who was insolvent owed the bank on a promissory note. His wife held a policy of life insurance on his life, and this she assigned to the bank as security for her husband’s debt. The wife testified that she was constrained by threats to make this assignment, but there was no evidence that the bank or the insurance company had knowledge of any such fraud. It turned out that under the laws of the state of which the insurance company was a citizen a policy to a married woman was not assignable. The bank returned the policy. When the next quarterly premium on the policy fell due it was not paid, and the policy was forfeited, although there were accumulated dividends sufficient to pay the premium. A new policy was issued for the same amount, bearing the same number, and at the same rate of premium as the first, and was in part purchased by the use of the reversionary insurance that stood to the credit of the first policy. It was issued to the executors, administrators or assigns of the assured, and was by him assigned to the bank. The bank paid the premiums on the second policy until the death of the insured. After the death of the insured, the i