Allstate Life Insurance Company, Inc. v. Stephens

SHORES, Justice.

The following facts were stipulated:

On September 24, 1970, Allstate issued a policy of life insurance insuring the life of Roy Lee Arthur Stephens. Ann Smith Stephens, wife of the insured, was named beneficiary. The policy had a face amount of $10,000, and the monthly premium was $17.40.

An initial payment of $34.80 was made by the insured at the time the application for the policy was completed. Thereafter the insured paid his premiums through the “check plan,” Allstate sending a draft to his bank on the first of each month beginning November 1, 1970, through November 1, 1973.…