Whaley v. American National Insurance Co.

As mortgagor on a real estate loan from defendant Mercantile Mortgage Company, plaintiff’s husband was insured for $7713.46 under a group credit life policy with American National Insurance Company. Pursuant to the terms of this policy, Mercantile charged Mr. Whaley the amount of the premmm required to keep coverage in effect. When Whaley prepaid $3355 on the mortgage in November of 1973, however, Mercantile neglected to adjust the charge to him for premiums. He continued to pay for decreasing term insurance as computed at the time the mortgage was drawn.

When Whaley died in January 1974,…