Year: 1876

will have important bearing upon all cases
Of life insurance contracted in the South
with Northern companies previous to the
war. In this case the New York Life
Insurance Company was the appellant vs..
William c. Stathan and others, an ap-
peal from the Circuit Court Of the United
States Circuit Court There were other
cases which involved the same points Of
law and from the Southern District Of
Mississippi 1t was decided that policy
Of Life Insurance which stipulates for the
payment Of an annual premium by the as
sured, with a condition to be void on nom
payment, is not an assurance from year to
year like common fire policy, but the
premiums constitute an annuity, the whole
of which is the consideration for the en-
tire assurance for life, and the condition is
a condition subsequent, making void the
policy by its non.performance.


But the time Of payment in such policies
is material, and if the essence Of the con-
tract and failure to pay involves an abso.
lutte forfeiture which cannot be relieved
against in equity, if failure to pay the an
nual premium be caused by the interven-
ton of war between the territories in which
the insurance company and the assured
respectively reside, which makes it un-
lawful for them to hold intercourse, the
policy is nevertheless forfeited if the COM


pany insist on the condition, but in such
case the assured is entitled to the equita-
BILE value Of the policy arising from the
premiums actually paid. This equitable


value is the difference between the cost of
new policy and the present value of
the premiums yet to be paid on the for
feited policy when the forfeiture occurred,
and may be recovered in al action at law
or suit in equity. The doctrine Of revival
of contracts suspended during the war is
one based on considerations of equity and
Justice, and cannot be invoked to revive
contract which it would be unjust or in.
equitable to revive, as where time is of the
essence of the contract or the parties can
not be made equal. The average rate Of
mortality is the fundamental basis Of life
assurance, and as this is subverted by
giving to the assured the option to revive
their politics or not after they have been
suspended by a war (since none but the
sick and dying would apply, it would be
unjust to compel a revival against the
company. Mr.. Bradley delivered the
opinion of the Court.


The first of these cases is bill in equity
filed to recover the amount of policy Of life
assurance, granted by the defendants, now
plaintiffs in error, in 1851 on the life Of
DR.. "A. r. Stathan, of Mississippi, from
the proceeds Of certain funds belonging to
the defendants, attached in the hands of
their agent at Jackson, in that State. 1t
appears from the statements of the bill that
the annual premiums occurring on the pol
icy were all regularly paid until the break.
ing out of the late civil war, but that in
consequence of that event the premium due
on the sth of December, 1861, was not paid,
the parties assured being residents of Mis-
sissippi and the defendants corporation
of New York. DR.. Stathan died in July
1862. The Sc ,ond case is an action at law
brought in the same court against the same
defendants to recover the amount of pol
icy issued in 1859 on the life of one Henry
S. Seyers, the husband of the plaintiff. In
this case also the premiums had been paid
until the breaking out of the war, when by
reason thereof they ceased to be paid, the
plaintiff and her husband being residents
Of Mississippi. seyers died in May, 1862.
The third case is similar action at law
brought in the same court against the Man
haitian Life Insurance Company, of New
York, to recover the amount of policy
issued by them, in 1858, on the life of C.
L. Buck, Of Vicksburg, Mass, the circum-
stances being substantially the same as in
the other cases. The policies in all the
cases were in the usual form of such in
struments, declaring that the company had,
in consideration of certain specified sum
to thern in hand paid the assured, and of an
annual premium Of the same amount to be
paid on the same day and month in every
year during the continuance Of the policy,
did assure the life of the party named in q