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Cabell v. Mutual Benefit Life Insurance

163 S.W. 1119, 157 Ky. 752, 1914 Ky. LEXIS 361
CourtCourt of Appeals of Kentucky
DecidedMarch 6, 1914
StatusPublished
Cited by2 cases

This text of 163 S.W. 1119 (Cabell v. Mutual Benefit Life Insurance) is published on Counsel Stack Legal Research, covering Court of Appeals of Kentucky primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cabell v. Mutual Benefit Life Insurance, 163 S.W. 1119, 157 Ky. 752, 1914 Ky. LEXIS 361 (Ky. Ct. App. 1914).

Opinion

Opinion op the Court by

Judge Turner

Affirming.

On the 22nd of June, 1889, appellee issued to Benjamin F. Cabell, a policy of insurance on the ordinary life plan for $5,000.

[753]*753Cabell paid the first eighteen premiums on this policy, but failed to pay the premium due June 22nd., 1907, whereupon the policy by its terms lapsed. He died on the 19th day of September, 1909, and this action was instituted by his personal representative on the policy.

The policy as originally issued had certain non-forfeiture provisions, but on the 9th of July, 1898, by written agreement between Cabell and the Company new non-forfeiture provisions, not essentially different, were substituted, and the ones so substituted are as follows, to-wit:

‘‘Non-forfeiture provisions.
“When After Two Full Annual Premiums shall have been paid on this policy, it shall cease or become void solely by the non-payment of any premium when due, its entire net reserve by the American Experience Mortality and interest at four per-cent yearly (provided there be no loan on the policy) shall be applied by the company as a single premium at the company’s rates published and in force at this date, either, first, to the purchase of non-participating terms; insurance for the full amount insured by this policy, or, second, upon the written application by the owner of this policy and the surrender thereof to the company at Newark within three months from such non-payment of premium, to the purchase of a non-participating paid-up policy payable at the time this policy would be payable if continued in force. Both kinds of insurance aforesaid will be subject to the same conditions, except as to payment of premiums, as those of this policy. Third, if preferred the company will on surrender of the policy fully receipted within the said three months deduct one per cent of the sum insured by the policy from its entire net reserve by the American Experience Mortality and interest at four and one-half per cent yearly, and pay the remainder of such reserve as a cash surrender value.
“If there be any loan on the policy such indebtedness will be paid off by the company out of the cash surrender value, and, if there be any remainder, a value will be allowed in the form of extended or paid-up insurance as above provided, the amount to be applied to the purchase of such insurance being correspondingly reduced in the ratio of the indebtedness to the full cash surrender thereof; or the remainder of the cash surrender value will be paid in cash, if the original policy be fully surrendered within three months from date of lapse.
[754]*754“If death shall occur within one year after the nonpayment of premium and during the term of extended insurance, there shall be deducted from the amount payable any premium that would have become due on this policy if it had continued in full force, also the amount of any indebtedness on this policy at time of such nonpayment of premium.
“The company will at any time while the policy is in full force loan up to the limit secured by its cash surrender value upon a satisfactory assignment of the policy, to the company as collateral security.
“The Figures Given in the Following Table are based upon the assumption that all premiums (less current dividends) have been full paid in cash, and that there is no loan on the policy. The loan, if any, may be paid oft at any time while the policy is in full force.’ ’

The table referred to in the above non-forfeiture provision is as follows, to-wit:

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Related

Cheek v. Commonwealth Life Ins. Co.
126 S.W.2d 1084 (Court of Appeals of Kentucky (pre-1976), 1939)
Inter-Southern Life Insurance Co. v. Omer
38 S.W.2d 931 (Court of Appeals of Kentucky (pre-1976), 1931)

Cite This Page — Counsel Stack

Bluebook (online)
163 S.W. 1119, 157 Ky. 752, 1914 Ky. LEXIS 361, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cabell-v-mutual-benefit-life-insurance-kyctapp-1914.