Mutual Life Insurance Company Of New York v. Johnson

293 U.S. 335 (1934)

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Nature of the Case

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Facts

On May 16, 1930, Mutual (D) issued to Benjamin F. Cooksey, a policy of life insurance in the amount of $4,500 with disability benefits. The policy provided that if Cooksey is totally and permanently disabled before the age of sixty, the company will pay him 'forty-five dollars monthly during such disability. If disabled the policy waived premium payments. Cooksey was also required to furnish to the Company due proof that he is totally and permanently disabled. A quarterly premium became payable under this policy upon November 16, 1931. This premium was never paid by Cooksey. The facts were that Cooksey was suffering from chronic nephritis. As early as December 14, 1931, he was totally and permanently disabled, not only physically but mentally, to such an extent that he was unable to give notice to D in advance of the default, and thus procure the waiver called for by the policy. The administrator Johnson (P) sued D for the benefits under the policy. D takes the ground that because of the omission of that notice the default is unexcused and the policy has lapsed. The District Court upheld D's position and directed a verdict for D. The Court of Appeals reversed, and remanded the cause for trial. D appealed.