North Carolina Mut. Life Ins. Co. v. Kerly

Action on a policy of life insurance. In several pleas defendant set up a breach of a condition of the policy to this effect, in general, that insured was in good health at the time of its delivery. To this defense plaintiff replied that defendant retained the first premium paid on the policy and delivered said policy with full knowledge of the fact pleaded by way of defense. This, on its face, was a good replication. But in proof of it plaintiff could only adduce evidence tending to show that defendant’s local agent had knowledge of the fact that the insured was not in good health at the…