The comet. [volume] (Jackson, Miss.) 1877-1882, 1879-03-01
KNICKERBoCKER LIFE ms. Co,
VS.. No. 1924.

| KNICKERBoCKER LIFE ms. Co,
VS.. mo 292+.
| VAsHTI HARLAND.
After paying for several years, in cash,
half of the annual premiums due on a
| $4,000 policy and executing his note for the
other half on 27th September, 1872, Har-
Ian surrendered that policy and accepted
what is called "apaid up policy" for $1,000.
There was at the time 1924 due on the
notes given for the credit portion of the
annual premiums, for which a consolidated
note was given, and the new policy stipu-
lated on its face that the amount of this
note was to be deducted after the death of
insured from the new policy.
| 1t was a condition of the new policy that
the interest to accrue for the year on the
note, was to be paid by 9th September,
annually, and in default of such payment
the policy should be forfeited, without
notice to any party in interest. Harlan
made two payments, but died before maxi
ing the third, then due.
| His widow sued the company, who
pleaded the forfeiture of the policy be-
cause its conditions had not been complied
with. In these pleas the Court sustained
! plaintiffs demurrer on the ground that they
offered no defense to the action.
This ruling, as gathered from the argu-
ment of counsel, was based upon the idea
that the interest to become due on the note
was not to be considered under the
contract. as properly the annual
premiums on the new policy, but
as merely constituting an integral por-
ton of the old debt, that the new policy
was in fact as well as in name "a paid up
policy" that nothing was due or became
due on it, and that it was pledged to the
company as a security for the ultimate
payment of the principal and interest which
would be due on the note at the date of the
death of the insured. And it is said that
the failure to pay the interest at the periods
stipulated, will not work a forfeiture, but
that the assured will be still entitled to
recover the full amount of the policy less
the note and accrued interest.
CHALMERS, j.
Held
1. The first clause of the new policy re-
cites that it is issued in consideration of
the surrender of the original policy and of
the representations made in the same and
of the payment of the interest annually
or all notes or credits given for premiums
on the policy surrendered (Which notes or
credits amounting to 1924 are now charged
against this policy on or before the 21th
of September, in each year.
ContemporaneouslY with the issuance OF
the policy, the insured executed the note
for 1924 Gin form receipt for loan by
which he obligated himself to account
for or pay the same out of the funds OF the
policy then ceived, and stipulated to pay
interest thereon in rdvauce, and on
failure to pay interest said policy
to cease and determine" How there can
be any mistake as to the meaning of this
language or any room for controversy with
regard to it, we are at loss to determine
. The new policy was paid up only In
name and the right to recover the sum as
sured by it was to be derived only by the
prompt aud faithful payn ent in future of
the Interest on 1924. The demurrer to
the pleas of defendant was improperly susr
tanned.
Indictment reversed and cause remanded. |