Butler v. New York Life Insurance

Callahan, J. (dissenting).

We hold that insured should have received credit for the cash payments made in connection with the “blue notes” in determining the amount of extended insurance available under the policies, otherwise they would conflict with the provisions of former section 88 (now § 208) of the Insurance Law. That section, in substance, states that if any insurance policy is lapsed for non-payment of any premium, or of any note given therefor, the reserves on said policy are to be applied to continue the insurance in force so long as said reserves will purchase temporary insurance…