Sherman v. Mutual Life Insurance

Citations

• 53 Wash. 523
• 102 P. 419

Syllabus

<p>Insurance — Policy—Stipulation for Cancellation — Contract for Loan- — Pledges. A stipulation in a life insurance policy, pledged as security for a loan, authorizing the company, upon a default, to cancel the policy without notice, and apply the cash surrender consideration to the payment of the loan, is valid; and where the loan equals the cash surrender value, the insured’s rights are terminated by cancellation of the policy after default.</p> <p>Same — Waiver—Extension of Time. In such a case, extension of the loan for one year is not a waiver of the stipulation authorizing a cancellation, where the insured was not misled, and appears to have treated his rights as terminated.</p>