Eckstein v. Northwestern Mutual Life Insurance

The sole issue made by the pleadings prior to the amendment of the complaint was whether it was the duty of the defendant to apply the dividend accumulations in its hands, in purchasing extended term insurance under the non-forfeiture provisions, so as to keep the policy in force. Provision 12-c of the policy reads as follows:

“Upon default in payment of premium, unless paid within the grace period, the amount of this policy and any existing dividend additions, less any indebtedness to the company on account hereof, shall be extended automatically as nonparticipating term insurance for such…