144 Ga. 729 | Ga. | 1916
An insurance policy, payable as a death claim to the insured’s executors, administrators, or assigns, provided for loans by the insurer in amounts stated in a table, upon the due assignment of the policy to the insurer qs collateral for such loans. It contained a clause that the “policy shall lapse and, together with all premiums paid thereon, shall forfeit to the [insurer] on the non-payment of any premium when' due, except that, provided premiums shall have been paid for the periods respectively mentioned in the following table, there will be granted, without action on the part of the assured, paid-
1. That upon default in the payment of the eleventh premium and the loan for which the policy was pledged, the policy automatically be
2. If in life, the insured, upon surrender of his policy within thirty days, was entitled to a paid-up term policy for the full amount of his policy for the time stated in the table, subject to reduction for indebtedness. This option was not exercisable after thirty days, notwithstanding the insanity of the insured during such time. See Balthaser v. Illinois &c. Co., 33 Ky. Law R. 283 (110 S. W. 258); Wheeler v. Conn. Mut. Life Ins. Co., 82 N. Y. 543 (37 Am. R. 594).
3. Although the insured died within a year from the default in payment of premium and loan, his administrator can not exercise the option of extended insurance given to the insured, for the reason that that option was conditioned upon the insured being in good health, and the insanity of the insured rendered him uninsurable as not being in good health. McNeill v. Southern &c. Ass’n, 40 App. Div. 581 (58 N. Y. Supp. 119, 122).
4. The provisions of the contract of assignment do not compel any election by the insurer of-any option given in the policy to the insured.
5. The insured’s administrator is entitled to recover the value of a paid-up policy, for such amount as the net amount of his reserve will purchase according to the table set out in the policy.
6. It is admitted in the brief of the defendant that under the policy the plaintiff is entitled to a sum due as for a paid-up policy. In agreeing with the contention of the defendant, as announced in the foregoing headnotes, that the plaintiff is not entitled to the amount due on the policy as extended insurance, we do not desire to deprive the plaintiff of a recovery of an admitted amount as paid-up insurance. We direct that the judgment be reversed, with direction, that the action proceed for a recovery of such amount as may be due as paid-up insurance under the terms of the policy.
Judgment reversed, with direction.