Hamilton v. Mut. Ben. Life Ins. Co

• Decision Date: 02 December 1899
• Citation: Hamilton v. Mut. Ben. Life Ins. Co, 34 S.E. 593, 109 Ga. 381 (Ga. 1899)
• Parties: HAMILTON. v. MUTUAL BEN. LIFE INS. CO.
• Court: Georgia Supreme Court

34 S.E. 593

109 Ga. 381

HAMILTON.

v.MUTUAL BEN. LIFE INS. CO.

Supreme Court of Georgia.

Dec. 2, 1899.

Life Insurance—DEFAULT in Premiums— EVIDENCE.

1.Where, upon default in the payment of a premium due upon a policy of life insurance, the company, as was its right to do under the terms of the policy, applied the net reserve, less certain indebtedness due the company, to the credit of the insured at the date of such default to "the purchase of nonparticipating term insurance for the full amount insured by" the policy, and the insured lived longer than such term insurance had to run, no recovery can be had upon the policy.

2.When, under the terms of such a policy, it appeared that the "nonparticipating term insurance" would be in force a period of time fixed by the "company's rate published and in force at" the time such term insurance was to be granted, an objection to parol evidence offered to show what were the company's published rates for such insurance, on the ground that "the construction of the contract was for the court, " was not meritorious.

(Syllabus by the Court.)

Error from superior court, Muscogee county; W. B. Butt, Judge.

Action by Caroline Hamilton against the Mutual Benefit Life Insurance Company.Judgment for defendant, and plaintiff brings error.Affirmed.

C. J. Thornton, A. E. Thornton, and O. M. Colbert, for plaintiff in error.

Brannon, Hatcher & Martin, for defendant in error.

COBB, J.This was an action upon a policy of life insurance issued by the defendant on October 2, 1891, upon the life of John C. Hamilton, in the sum of $2,000, payable to Caroline Hamilton, the wife of the insured, and the plaintiff in the present case.The uncontradicted evidence establishes the following facts: The insured died March 13, 1895.Two annual premiums were paid on the policy, but default was made in the payment of the third premium, due September 19, 1893.On this date the "net reserve" to the credit of the insured on the books of the defendant company was $38.04.The company had loaned the insured on his policy $14.22, and this amount, together with the agreed rate of interest thereon, deducted from the net reserve, left to his credit the sum of $18.04.The policy provides that when, after two full annual premiums shall have been paid, it shall become void solely on account of nonpayment of any premium, the net amount due the insured at the date of the default shall, upon surrender of the policy, and request by the insured, be applied to the...