Court Opinion

ID: 9445753
Source: CourtListenerOpinion
Date Created: 2023-08-03 21:37:31.43442+00
Date Added: 2024-06-11T17:30:23.783228
License: Public Domain

MURRAH, Circuit Judge
(dissenting).
I agree that employer, Liebmann, advanced the required monthly insurance premiums for employee, Likens, until October 1, 1954, for which Likens became indebted to his employer in the sum of $35.46. Indeed, all parties seem to agree that the insurance was in force until that time. But Liebmann was certainly under no obligation to advance these premiums, and prior to October 1, notified Likens of its intention not to advance any further premiums, stating that if he wanted his insurance kept in force, he must pay the past due premiums and start deducting the future *901premiums from his payroll. Liebmann accordingly notified the insurance company on October 23, on a prescribed form, that Likens’ insurance was canceled as of October 1, 1954 “at the request of the policyholder.”
Likens terminated his employment with Liebmann on November 1. The premiums for the months of October and November were inadvertently paid by Liebmann after formal notice of cancellation; the insured did not rely upon them and the insurance company is therefore not estopped from asserting the formal termination of the policy. The refund of premiums after cancellation was a matter solely between the employer and the insurance company, in which the employee had no interest or knowledge.
I would hold that the policy was automatically canceled on October 1, 1954 by the employer in accordance with its terras by formal notice, with knowledge of the insured and that the subsequent payment of the premium did not operate to continue the insurance in force thereafter.