Atlantic American Life Insurance v. Huddle House, Inc.

Marshall, Judge.

Huddle House, Inc., filed an action to recover the face value of a life insurance policy it had purchased on the life of one of its franchisees. After the franchisee’s association with the plaintiff insured was terminated, the plaintiff wrote its insurance agent on July 11, 1974, requesting that the policy be canceled "effective immediately.” Thereafter, the defendant insurer immediately changed the preauthorized bank drafts in its possession, by which the premiums had been paid, to delete the premium on the policy, the last such payment being made on July 12, 1974. By letter…