Horan v. Knights Life Insurance Co. of America

Opinion by

Baldbige, J.,

In this suit to recover upon a life insurance policy, the question before us is whether, in computing the automatic extended insurance following a lapse for failure to pay the premiums, the outstanding indebtedness should be deducted from the face amount of the policy as well as from the cash value thereof.

The appellee issued a policy of insurance, February 18, 1919, on the life of Patrick Horan, in the sum of $1,000, the beneficiary named therein being Barbara Horan. After this suit was instituted, the beneficiary died and her administrator was substituted as plaintiff…