Phelps v. State Mutual Life Assurance Co.

This appeal involves the propriety of a judgment in favor of the Merchants National Bank and Trust Co. against the State Mutual Life Assurance Company.

The insurance company had issued a group policy in favor of the bank in which it agreed to make payments to the bank upon the deaths of certain insured debtors. If one Katie Phelps (now deceased) was an insured debtor under the meaning and intent of this policy, the judgment must be affirmed. If she was not, reversal is required.

Said Katie Phelps was the owner of a dwelling house which she occupied with her three adult sons. A credit…