Gulf Life Insurance Co. v. Frost

The policy of insurance in this case provided for payment of premiums by a specified date, and for an additional grace period. However, immediately prior to death of the insured, the insurance company had been accepting monthly premiums at a later time than was allowed by the grace period. The policy had no language therein specifying the actual effect of failure to pay premiums promptly, simply stating: "Failure to pay any premium when due constitutes a default in premium.” It was not stated whether this suspended the insured’s rights to payment of benefits under the policy, or rendered the…