Stewart v. American Life Ins.

Stewart, the insured, died May 31, 1932. Thereafter, the Insurance Company notified the beneficiaries that it elected to cancel the policies on the ground of fraud and tendered them the amount of the premiums paid, with interest. After waiting a reasonable time for the beneficiaries to bring actions at law on the policies, it filed its bills in equity on September 3, 1932, for cancellation of the policies.

Paragraph eight of each bill read as follows :

“8. That the said policy contains a clause in words and figures as follows, to-wit:

“ ‘Incontestability: This policy shall be incontestable,…