Provident Sav. Life Assur. Soc. v. Duncan

Citations

• 115 F. 277
• 53 C.C.A. 69
• 1902 U.S. App. LEXIS 4206

Syllabus

<p>Life Insurance — Forfeiture for Nonpayment of Premium — Estopped.</p> <p>The holder of a life insurance policy which provided that premiums might be paid to an agent of the company, but only in exchange for the company’s receipt, was notified by the company that the receipt for a premium had been sent to a certain bank, and that payment could there be made. On the last day for such payment it was found that, by direction of the company, the bank had previously returned the receipt. There was no other agent in the place who was authorized to receive payment, and the company refused to accept it thereafter without a health certificate, which could not be furnished, and the premium was not paid. In an action on the policy after the death of the insured, the only defense was that of forfeiture for nonpayment of such premium. The jury found for plaintiff, under instructions charging that such a verdict could only be returned in case it was found that payment of the premium was prevented solely by defendant’s withdrawal of the receipt, and there was evidence which supported such a finding. Held, that defendant, having, in violation of its duty under the contract, withdrawn the receipt, and thus prevented payment of the premium except on a condition which could not be complied with, and of which fact the evidence tended to show it had previous knowledge, was estopped to claim a forfeiture because the payment was not made or tendered.</p>