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1943 Ins. L.J. 1 (1943)

handle is hein.journals/inslj5 and id is 1 raw text is: THE INSURANCE LAW JOURNAL 1 tAdvance Digest of Full-Text Decisions currently reported in the ~CCH INSURANCE LAW REPORTING SERVICE Fire and Casualty 0 Negligence * Life, Health and Accident 0 Automobile .January 7, 1943 DEDUCTION OF GROUP PREMIUM FROM RECOV- ERY ON SINGLE CERTIFICATE Action was brought to recover death benefits under Certificate C No. I issued under a group policy owned by the insured's employer. The insured died on December 9, 1929. The premiums on the group policy for the years expiring March 31, 1926, to March 31, 1929, inclusive, were paid by the employer, but no payment was made for the policy year ending March 31, 1930. Death Within Grace Period Plaintiff claimed that Certificate No. I was in effect at the Please Route to:i thi e ol in e the ie r because the employer, in suing and recovering several years latera assignee of the beneficiary of ........................ Certificate No. 56, reduced the amount of its recovery by the an- nual premium due on the group policy. The insured under Cer- ........................ tificate No. 5 died on April 2, 1929, which was within the grace period for the payment of the annual premium. Under the law, ....................the grace period was mandatory, but provision for deduction of overdue premiums when the insured dies within the grace ........................ period was permissive only and no such provision was included in this policyt Since the insurer elected to omit this provision, ........................ there was nothing in the contract and nothing in the statutes which authorized any deduction for premiums if the insured ............. .......... died within the grace period of the policy. However, recogniz- ing the equity of such deduction, the Ohio Court of Appeals in ........................ Gwinn v. iohn HancoMpa to t ra e Company, 503,094, was of the opinion that, if given application to the ........................ instant situation, it would not change the respective rights of the parties. o...... ........ ..... ... Effect of judgment on Other Certificate There is no authority i law to deduct the full premium and return to: due inder a group policy from the insurance afforded by a single certificate. The employer voluntarily 'relinquished its ........... ............ right toea judgment for the face amount of Certificate No. 56 i and no issue was thereby made as to the right of the insurer to this premium. - The judgment on that certificate was ineffec- tive to bind the insuran c company to treat the conceded credit as payment of the annual premium on the group policy. Printed In U. S, . ~Published weekly by Commerce Clearing House, Inc., 214 N. Michigan Ave., Chicago, Illinois. Subscription Rates: one year, $10; with full-text reports and bound volumes, $3S per year for each selective unit. except Automobile which Is $45 per Year; single copy om of weekly number, 25 cents. Entered as second class matter January 25, 1939. at the post office at Chicago, Illinois, under the Act of March 3, 1879. Co Stright 1942 by wneo CTlearing House, Inc. All righlts resert d.