Pierce Butler

“ The provision that the company may require proof of continuance of disability conditions the right of the insured to have future installments, but imposes no obligation upon him. He was at liberty, without breach of contract, to refrain from making the claim or to refuse disclosure of his condition or to permit examination. ”

“ Its obligation was not an unqualified one to pay or to pay on the mere occurrence of disability, but only after proof of that fact. Similarly its agreement to continue payments once begun was conditioned upon the persistence of insured's disability, and, at the election of the insurer, proof of that fact by physical examination, but after two years not oftener than once a year. These conditions serve to define the insurer's promises but impose no obligation on the insured. By payment of the premiums he acquired the options and privileges specified. ”

“ Plaintiff's expectation of life was taken at 34 1/2 years or 414 months. Payments of $50 per month would be $20,700. If the face of the policy, $5,000, be added, the total is $25,700. But it seems that payments of $70 instead of $50 per month were taken. Then the installments without discount would be $70 X 414 or $28,980, plus $5,000 equals $33,980.↑ The declaration alleges an expectation of life of 40 years. Installments of $20 per month amount to $9,600. Adding $2,000, the face amount of the policy, produces the amount claimed. ”

“ New York Life Insurance Company
Argued: May 6, 1935. --- Decided: May 27, 1935
In 1933 petitioner brought two actions against respondent in the circuit court of Harrison county, Miss. There being diversity of citizenship, defendant removed them to the federal court for the southern district of that state. The court consolidated the cases for trial, and, at the close of the evidence, directed verdicts and entered judgments for defendant. The Circuit Court of Appeals affirmed. 74 F. (2d) 588. ”