Prudential Insurance Co. of America v. Devoe

Briscoe, J., delivered the opinion of the Court. This is an action on a policy of life insurance, issued by the appellant, on the life of James,B. Devoe, of Harford County, for the sum of one thousand dollars and payable to the appellee, who was named as the beneficiary therein. The policy is dated the 27th day of March, 1901, and recites that in consideration of the application for the policy which is a part of the contract and of the payment of the premium stated therein, the company insures the person designated as the insured, for the sum of $1,000, payable as specified, subject to certain privileges and provisions, that are made a part of the contract of insurance. The first premium was payable on the delivery of the policy ⁵⁸⁶ and the others were payable on or before the 27th day of March in every year during the continuance of the policy, until twenty full year premiums had been paid.

The policy also contained certain special privileges, as follows : “in the payment of any premium under this policy, except the first, a grace of one month will .be allowed, during which time the policy will remain in force. If the policy, after being in force one full year, shall lapse for non-payment of premium the company will continue in force the insurance under the policy for a period of sixty days from the date of the lapse.” ' James B. Devoe, the insured, died on the 20th of June, 1902, and the appellant company denying liability, under the policy, a suit was brought against the company, in the Circuit Court for Harford County to recover the amount payable thereunder. The judgment was for the plaintiff and the defendant has appealed. The record- in the case contains three bills of exception and they present the questions brought here for review.

The declaration contained the usual counts in assumpsit, and a special count on the contract of insurance set out in the policy. To the declaration, the appellant company pleaded, that it never promised as alleged, and that the insured never paid the premium on the policy due on March 27th, 1902. There was a demurrer to the declaration, which was overruled by the Court, but as the appellant in its brief states, that it was only insisted upon to the ninth count and to it only for the reason that it does not allege payment of the premium which fell due on the 27th day of March, 1902, and as the same question is presented in the third exception, we will consider it, in the regular order. The principal questions in the case, and those urged by the appellant at the hearing and in the brief are, first, whether under a proper construction of the policy in this case, the insurance was in force, at the death of the insured, James B. Devoe; ⁵⁸⁷ second, whether the right of recovery had been lost by a failure of the appellee to furnish the required notice and proofs of death.

We do not think there can be any very serious difficulty as to either of these propositions, under the facts of this case. It appears from the face of the policy here sued on, that the first premium was paid by the insured, on the 27th day of March, 1901, and on that date the policy of insurance was delivered to him. The second premium was payable on the 27th day of March, 1902, and it is conceded that it was not paid on that date. The policy distinctly provides : First, that in the payment of any premium under this policy, except the first, a