First National Bank of Midland, Trustee v. Protective Life Insurance Company

DYER, Circuit Judge:

This appeal involves the construction of a life insurance policy to determine whether the policy’s conversion option may be elected, subsequent to the lapse of the policy, while coverage continues as extended term insurance under the automatic non-forfeiture provision of the policy. The district court ruled that it could not. We agree and affirm.

Robinson, the deceased, purchased a $100,000 life insurance policy in May, 1965, and subsequently transferred title in trust to plaintiff First National Bank of Midland, Texas, retaining the obligation to pay premiums. He failed to…