Cauley v. General American Life Insurance

It is generally understood that the nonpayment of a premium when due, or within the period of grace thereafter, in the absence of some extension or waiver, automatically avoids a policy of insurance. Rees v. Ins. Co., 216 N. C., 428, 5 S. E. (2d), 154; Allen v. Ins. Co., 215 N. C., 70, 1 S. E. (2d), 94. This was the theory upon which the case was tried, and it is the basis of the nonsuit. Williamson v. Ins. Co., 212 N. C., 377, 193 S. E., 273. It is also understood that the giving of a worthless check is not payment. Hayworth v. Ins. Co., 190 N. C., 757, 130 S. E., 612. Nor is the case of…