69 F.2d 526 (2nd Cir. 1934), 315, Wilber Nat. Bank of Oneonta, N.Y., v. United States

Docket Nº:315.
Citation:69 F.2d 526
Party Name:WILBER NAT. BANK OF ONEONTA, N.Y., v. UNITED STATES.
Case Date:March 05, 1934
Court:United States Courts of Appeals, Court of Appeals for the Second Circuit
 
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Page 526

69 F.2d 526 (2nd Cir. 1934)

WILBER NAT. BANK OF ONEONTA, N.Y.,

v.

UNITED STATES.

No. 315.

United States Court of Appeals, Second Circuit.

March 5, 1934

Page 527

Oliver D. Burden, U.S. Atty., of Syracuse, N.Y., Will G. Beardslee, Director, Bureau of War Risk Insurance, of Washington, D.C., and Wilbur C. Pickett, Sp. Asst. to Atty. Gen., for the United States.

Frank C. Huntington, of Oneonta, N.Y. (Sterling P. Harrington, of Oneonta, N.Y., of counsel), for appellee.

Before MANTON, AUGUST N. HAND, and CHASE, Circuit Judges.

MANTON, Circuit Judge.

The appellee brought this action, as administrator of the estate of the deceased, to recover upon a contract of the United States government life insurance issued effective July 1, 1927. The deceased was a World War veteran and held a war risk term insurance policy for $10,000, which lapsed August 31, 1919, through failure to pay the premium on August 1, 1919. In June, 1927, he applied for reinstatement of $5,000 of this insurance to be effective July 1, 1927. The requirements of reinstatement were payment of premiums on the $5,000 policy he desired reinstated for the lapsed month of August, 1919, which was $3.35, and one month's premium on the converted policy, $3.95.

About July 1, 1927, the insured remitted his check for $13.90 to pay for the lapsed month and for the months of July and August, 1927, and left a credit of $2.65 to be applied on account of $3.95 to become due September 1. The United States issued a receipt, dated July 29, 1927, for the remittance which contained the following clause:

'Important.-- Insurance under the application evidenced by the above remittance shall be effective subject to the World War Veterans' Act, 1924 and Regulations, i.e., provided that previous term insurance be in force, or if lapsed, reinstatement thereof be approved by the Bureau; or if there be no previous term insurance that the applicant be entitled to Government Life Insurance; and that proper amount be tendered to cover the premium and that application be acceptable to the Bureau; otherwise the remittance will be returned to the depositor.'

The policy was issued September 9, 1927, and received by the insured shortly thereafter. The insured was not advised as to how his remittance of $13.90 had been applied. On November 2 and December 20 remittances of $3.95 were sent and no acknowledgment...

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