Straube v. Pacific Mutual Life Insurance

Citations

• 123 Cal. 677
• 56 P. 546
• 1899 Cal. LEXIS 1137

Syllabus

<p>Life Insurance—Construction of Policy—Forfeiture—Production of Receipt.—A life insurance policy providing that it shall be forfeited, “if the premiums shall not be paid within thirty days of the time they become due, at the office of the company .... or to other duly authorized agents, when they produce receipts signed by the president,” et cetera, is not to be construed as requiring the production of the receipt, as a condition precedent to the payment of the premium.</p> <p>Id.—Surrender—Right to Paid-up Policy.—Under a policy providing that after three years’ premiums have been paid, the assured, upon surrender of the policy “while it is, by its terms, in full force and effect,” shall be entitled to a paid-up policy without profits for an amount allowed by the rules of the company, the right to a paid-up policy is dependent upon an original policy of present substantial value, and does not exist where the policy has become forfeited by its terms.</p> <p>Id.—Construction of Code—Application of Net Reserve to Premiums —Requirement of Stipulation.—The provision of section 450 of the Civil Code requiring life insurance companies insuring residents of this state by policies delivered therein, to contain a stipulation that after three years’ annual premiums have been paid the net reserve shall be applied as a premium, and imposing as a penalty for failure to do so the cessation of the right of the company to do business in this state, is not made part of the contract of insurance, in the absence of such stipulation, and does not make the required stipulation a part of the policy as matter of law.</p>