Guernsey v. Loyola Federal Savings & Loan Ass'n

Harriett D. Guernsey, plaintiff-appellant, sued Loyola Federal Savings and Loan Association, defendant-appellee, for allegedly permitting a policy of insurance on the life of her hus band to lapse. The policy had been taken out by Mr. Guernsey on November 18, 1949 with a Virginia life insurance company. Its agreed purpose was to secure an outstanding balance of $10,000 owed under a mortgage executed on April 22, 1947 by Mr. and Mrs. Guernsey to Loyola as mortgagee, to enable the Guernseys to purchase a home.

The policy provided for insurance in the initial amount of $10,000 with ultimate…