Mutual Life Insurance v. Mooreman

MERRILL, Circuit Judge.

The question on this appeal is whether a policy of life insurance issued by *688appellant had lapsed for nonpayment of a premium prior to the death of the insured.1 The District Court ruled that it had not; that while the crucial premium had not been paid by the owner, appellant at that time was indebted to the owner in an amount in excess of the premium and that payment must therefore be presumed to have been made by operation of law.

Appellee is trustee in bankruptcy of the Arizona corporation which was the owner and beneficiary of the policy in question. The policy…