White v. New York Life Ins. Co.

• Decision Date: 07 January 1909
• Parties: WHITE v. NEW YORK LIFE INS. CO.
• Court: United States State Supreme Judicial Court of Massachusetts Supreme Court

200 Mass. 510

86 N.E. 928

WHITE v. NEW YORK LIFE INS. CO.

Supreme Judicial Court of Massachusetts, Norfolk.

January 7, 1909

Jan. 7 1909.

COUNSEL

H. T Richardson and R. Y. Fitzgerald, for plaintiff.

W. A. Morse and F. J. Geogan, for defendant.

OPINION

KNOWLTON C.J.

All of the plaintiff's requests for rulings which were refused by the court relate to the effect, upon the rights of the parties, of the agreement contained in Exhibit C, which was made on August 19, 1906. The premium upon the policy of insurance on the life of the plaintiff's husband was payable annually on August 19th. The policy was issued on August 19, 1903, and the assured paid two annual premiums in cash. When the third premium became due, on August 19, 1905 he did not pay it in cash, but gave his note for the amount due, payable on August 19, 1906, and he paid the interest on it to that date. At the end of the year, on August 19, 1906, he did not pay the note, but paid interest on it in advance for another year. He did not pay the premium due on that date, and, if no other arrangement had been made, the policy by its terms would then have been finally forfeited for nonpayment of the premium, subject to the right of the assured to have the benefit of the excess of the reserve credited to the policy above the indebtedness of the assured, which reserve would keep the policy in force for eight months longer, so that there could have been a recovery under it if the assured had died at any time before April 19, 1907, but not if he died afterward. His death occurred on July 12, 1907, and the question is whether the further arrangement, made on August 19, 1906, kept the policy in force until the time of his death. This arrangement was a payment of $31.25 in cash, and the giving of a note for $94, due February 19, 1907, which is Exhibit C. Included in the note was this agreement in writing: 'This note is accepted by said company at the request of the maker, together with $31.25 in cash, on the following express agreement: That although no part of the premium due on the 19th day of August, 1906, under policy No. 3,476,346, issued by said company on the life of Frank A. White, has been paid, the insurance thereunder shall be continued in force until midnight of the due date of said note; that if this note is paid on or before the date it becomes due, such payment, together with said cash, will then be accepted by said company as...