United Security, Life Insurance & Trust Co. v. Ritchey

Citations

• 187 Pa. 173
• 40 A. 978
• 1898 Pa. LEXIS 785

Syllabus

<p>Mortgage — Life insurance — Payment—Statement.</p> <p>On a scire facias sur mortgage it appeared that the plaintiff, a life insurance company, in accordance with its manner of doing business, had paid the defendant the amount of his insurance at the time the contract was made; that in consideration thereof the defendant contracted to pay to the company for a fixed period an agreed monthly premium, to be secured by a mortgage. According to the by-laws of the plaintiff, the death of the insured ipso facto would extinguish the mortgage, but on failure to pay, the company had the option of collecting premiums as they fell due, or of demanding repayment of the amount of the insurance advanced. The defendant further had the right to cancel the policy at any time after five years, upon paying any premiums then due, and in such case the company agreed to account to him for the surrender value of the policy, to be computed according to the life tables then adopted and in use by the company, access to which tables at the office of the company should at all times be had by the insured. The defendant paid his monthly premiums for a time, when he defaulted, but subsequently made good the default, and the company reinstated him. Afterwards there were frequent defaults and reinstatements until finally defendant asked the company for a statement of the balance due after crediting all payments as premiums. This statement was furnished, but the balance claimed was not paid, and the company issued a scire facias on the mortgage. Defendant filed an affidavit of defense in which he averred that on his defaults the contract of insurance was forfeited, and that payments made by him thereafter were merely payments on the loan. He did not, however, deny that when he made default and paid up arrears he was reinstated, but he averred that the company gave him no notice of reinstatement. Held, (1) that the contract of insurance was in no sense unfair or unconscionable ; (2) that the defense