Senin, Admr. v. Metro. Life Ins. Co.

Opinion by

Kenworthey, J.,

The question is whether appellant had the right to compound interest on the policy loans. If it did not, the cash value would have carried the policies beyond the insured’s death on April 3, 1940 and they were prematurely cancelled.

It has been settled that, in the absence of a provision authorizing it in the policy and the loan agreement, an insurance company has no right to compound interest on policy loans. Murray v. Prudential Ins. Co., 144 Pa. Superior Ct. 178, 18 A. (2d) 820. The lower court held first that, whether or not the policy and agreement provided for.…