Alliance Life Ins. v. Saliba

STONE, Circuit Judge.

In 1926, Saliba took out a life insurance policy in the Old Colony Life Insurance Company of Chicago, 111., which provided for a payment of $10,000 upon his death and also for monthly disability income payments of $100. Thereafter, the disability under the policy occurred and the claim therefor resulted in an action on the policy by him in a state court. Without trial, the parties agreed upon a settlement which was embodied in a consent decree. This settlement provided that the existing policy should be canceled and delivered up to the company and that a new policy of the…