National Interstate Life Insurance Co. v. Thomas

DOOLIN, Justice:

Was a credit life insurance policy automatically renewed when the bank note it protected was renewed by the parties, even though no payment designated as “premium” was paid? We answer in the negative.

Hugh Max Thomas (Thomas) negotiated a single payment note from Oklahoma State Bank of Konawa (Bank) on January 22, 1975, due in six months. A credit term life insurance policy was issued to cover the note with the premium loaned by Bank and added to the note principal. The loan amount was $21,000.00 with $178.50 added for the premium to make the note’s face amount $21,178.50.

On…