Jefferson Trust & Savings Bank v. Lincoln National Life Insurance

The assignee of a life insurance policy, Jefferson Trust & Savings Bank of Peoria (plaintiff), brought suit against defendant National Life Insurance Company to recover the cash surrender value of the policy. Both parties filed motions for summary judgment. The circuit court entered summary judgment in favor of plaintiff and defendant appeals.

The policy contained an “Automatic Premium Loan Privilege” which provided that any premium not paid before the expiration of the grace period was to be treated as paid and charged automatically as a loan against the policy with interest from the due date…