Jewett v. Northwestern National Life-Insurance

1. Life Insurance — Premiums—Time of Payment. That a life-insurance policy dated August 1st, and providing for payment of premiums on .the 1st day of certain months, was not issued until August 18th, does not postpone the time of payment of the subsequent premiums to the 18th of the several months. s! Same — Forfeiture—Nonpayment of Premiums — Waiver. Assured, having failed to pay a quarterly life-insurance premium, due August 1st, wrote on October 27th to know how much was due. The company replied on October 81st, stating the amount of the past-due premium with interest, which assured remitted November 4th and the company receipted for November 7th. Held, that the action of the company in receiving and retaining the remittance of November 4th was not a waiver of the forfeiture occurring by reason of the nonpayment of the premium due November 1st.

Error to Wayne; Brooke, J. Assumpsit by Ina L. Jewett against the Northwestern National Life-Insurance Company on a policy of insurance. There was judgment for defendant on a verdict directed by the court, and plaintiff brings error. On August 11, 1902, one James H. Jewett, the husband of plaintiff, made application to the Northwestern Life & Savings Company, of Des Moines, Iowa, for insurance upon his life. Mr. Jewett was then a subagent for said company, soliciting insurance in the city of Detroit. The first year’s premium ($100) was paid by Mr. Jewett on August 11th. Upon the receipt of the application and the money the policy was issued to Mr. Jewett on August 18, 1902. Mr. Jewett made no further payment until November 4, 1903, when, through bis wife, be sent a draft for $95.59. On October 97,1903, Mr. Jewett, through his wife, wrote the company, asking for a statement of the amount of the pi’emium due. The company replied to that letter October 31st, informing him that the total amount due for the delinquent payment was $95, and interest 59 cents. This amount was remitted by letter November 4th. On November 7th the company sent Mr. Jewett a receipt for the money, acknowledging it as the quarterly premium due on the policy August 1, 1903. No further payments of premiums were made, and Mr. Jewett died November 17, 1903. Plaintiff, his widow, is the beneficiary named in the policy. The defendant in this case reinsured and guaranteed all the policies of the Northwestern Life & Savings Company. The company was duly notified on December 1, 1903,. of the death of Mr. Jewett, and was asked for blanks upon which to make proof of death. The company refused to furnish the blanks, and waived proofs , of death. The policy of insurance, after the first year’s payment, which was paid in advance, required a like amount to be paid each year thereafter in four installments “ on or before the first day of August, November, February, and May in every year, until ten full annual premiums have been paid, or until the prior death of the insured.” The insurance covered the life of James H. Jewett— “ In the amount of $500, commencing on the first day of August, 1909, at noon, for a period of five years, and in the amount of $1,000, commencing on the first day of August, 1907, at noon, and continuing for a periód of five years; and doth hereby promise and agree to pay the amount of said insurance at its office in the City of Des Moines, Iowa, to Mrs. Ina L. Jewett, wife, her executors, heirs, administrators or assigns, upon receipt and approval at said office of proofs, as hereinafter required, of the death of the insured during the continuance of this policy. “Should this policy be kept in force for the full term of ten years (no death liability having accrued hereunder), then the said company doth promise and agre.e to pay to the legal holder hereof, at its Home Office, the sum of $1,000 and all accumulations in excess of said guarantee which the full amounts to the credit of this policy in the reserve and savings funds may produce. “This policy is issuéd subject to the provisions, regulations and agreements stated on the subsequent pages hereof, which are hereby referred to and made a part of this contract.” It further provides: “ The nonpayment of any premium when due shall forfeit all premiums paid on this policy, and terminate the liability of the company thereunder except as hereinafter provided.” There was a clause for the reinstatement of a lapsed policy, which is as follows: ‘' This policy may be reinstated during the life of the insured at any time within twelve months of date of lapse by the payment of all past due premiums, and a fine of ten per cent, per annum on such overdue premiums.” Under the head of “general regulations” there was a clause which provided: ‘ ‘Any indebtedness to the Company, including any balance of the current year’s premium remaining unpaid, will be deducted in any settlement of this policy or any benefit thereunder.” The above facts were agreed to, so there is no disputed question of fact involved. The court directed a verdict for the defendant, holding that the policy had become forfeited because of the failure to pay the premium. due November 1st.