Kadelburg v. Hartford Accident & Indemnity Co.

Headnote

Insurance (accident) — waiver — non-payment of last premiums due before death of insured — custom of extending credit and delivery of certificate of renewal to broker of insured kept policy in force in absence of notice of cancellation.

Kadelburg v. Hartford A. & I. Co., 223 App. Div. 169 , affirmed.

Appeal from a judgment, entered March 30, 1928, upon an order of the Appellate Division of the Supreme Court in the first judicial department, which reversed an order of the court at a Trial Term, setting aside a verdict in favor of plaintiff directed by the court, and reinstated the verdict. The action was to recover upon a policy of accident insurance. The defense was that the policy had expired by failure to pay the premium. The policy was issued July 22, 1921. The insured died from accident November 4, 1923. Testimony showed that it had been the custom of defendant to send a renewal certificate to the broker of the insured and to extend credit for payment of the premiums. The last premium paid was due January 22, 1923, but payment was not made until April 7, 1923. The next payment was due July 22, 1923. The renewal certificate was sent to the

broker and held by him until after the death of insured, but the premium was not paid. The Appellate Division held that the course of dealing as to previous payments and the delivery of the renewal certificate to the agent of insured kept the policy in force in the absence of notice of cancellation.