John Hancock Mutual Life Insurance v. Virginia National Bank

Virginia National Bank (bank) brought an action against John Hancock Mutual Life Insurance Company (company) to recover $9,569.02, which it claimed was due by virtue of an assignment of a life insurance policy. The policy had been assigned by Nathan Swersky, the insured, to secure certain loans made to him and his wife by the bank. The company claimed it was entitled to set off against the policy’s cash value the amount of premium loans it had made to Swersky. But the bank contended that the company was estopped to do so. On October 22, 1969 the court awarded a judgment to the bank in the…