187 Ga. 304 | Ga. | 1938
Lead Opinion
1. While, in view of the provisions of the Code, § 20-116, that "where parties, in the course of the execution of a contract, depart from its terms and pay or receive money under such departure, before either can recover for failure to pursue the letter of the agreement, reasonable notice must be given the other of intention to rely on the exact terms of the agreement,” it may be stated as a general rule that where an insurer, by his custom and course of dealing with the insured, in receiving without objection premiums and assessments past due, when he could have insisted upon a forfeiture of the policy, has induced the belief on the part of the insured that premiums or assessments will be received by 'the insurer within a reasonable time after their maturity, the insurer can not subsequently claim a forfeiture of the policy because -another premium or assessment was not paid on the date due,
2. It follows that where the contract of insurance, by reason of the constitution and by-laws, further provides that the suspended member, “if in good health, may within three calendar months from the date of his suspension again become a member .• . by the payment of the current installment of assessment and all installments . . which should have been paid to maintain him as a member,” and “such payment shall be held to warrant that he is
3. The rulings in Adams v. Washington Fidelity National Insurance Co., 48 Ga. App. 753 (173 S. E. 247); Sovereign Camp W. O. W. v. Milton, 51 Ga. App. 301 (180 S. E. 253); Commercial Casualty Insurance Co. v. Campbell, 54 Ga. App. 530 (188 S. E. 362); Sovereign Camp Woodmen of the World v. Whitaker, 57 Ga. App. 418 (195 S. E. 584), in so far as they may conflict with these rulings, are disapproved.
4. The Court of Appeals erred in holding that under the facts of the case the judge was authorized to find that there was a waiver by the association of the terms of the contract which avoided the certificate, and was authorized to hold that the insured was misled, and the association was estopped from avoiding the certificate, on the grounds that the September installment was not paid on or before the due date.
Judgment reversed.
Concurrence Opinion
concurring specially. Under the terms of the contract, knowledge of the local secretary that several payments of premiums were made after maturity was not imputable to the association; and consequently their acceptance by the association did not amount to an intentional departure from the terms of the policy. It appearing that before the death of the insured the policy had lapsed "for default in payment of the September premium, the association' was not liable.