Northwestern Bank of Commerce v. Employers' Life Insurance Co. of America

CHARLES W.’KENNEDY, Justice. *

Plaintiff, Northwestern Bank of Commerce, loaned money to Lionel Birkeland, who assigned plaintiff a policy of life insurance issued by defendant, Employers’ Life Insurance Company of America, as collateral. Defendant promised to notify plaintiff in the event of premium default. The issue is whether defendant is liable for failure to inform plaintiff that Birkeland did not pay the premium due on June 10, 1972, as a result of which the policy lapsed.

The parties submitted the case to the trial court on a stipulation of facts and by cross motions for summary…