AMERICAN INS. UNION v. WOODARD

AMERICAN INS. UNION v. WOODARD
1926 OK 547
247 P. 401
118 Okla. 243
Case Number: 16389
Decided: 06/15/1926
Supreme Court of Oklahoma

AMERICAN INSURANCE UNION
v.
WOODARD.

Syllabus

¶0 1. Insurance -- Wrongful Forfeiture of Fraternal Insurance Contract--Action Against Insurer for Damages. If a fraternal insurance company wrongfully declares the forfeiture of a contract of insurance, issued in favor of one of its members, and gives notice of the forfeiture to the latter, the assured is excused from further performance of the contract, and may treat the contract of insurance as terminated. Thereupon a right of action accrues in favor of the assured against the insurance company for damages for the wrongful breach of the contract.
2. Same--Measure of Damages. The measure of damages for the wrongful breach of a contract of insurance, issued by a fraternal insurance company to one of its members, is the present value of the policy, if the member at the time of the breach of the contract is no longer an insurable risk.
3. Same--Present Value of Policy -- How Determined. The present value of the policy is determined by ascertaining the total amount of premiums which would be required to carry the policy during the life expectancy of the assured from the time of the breach of the contract, and deducting such sum from the face of the policy. A sum of money equal to the interest on the remainder of the policy, for the life expectancy of the assured, should also be deducted from the face of the policy. The remainder from the face of the policy after the two deductions will constitute the present value of the policy, provided, however, a sum of money equal to the interest on the total premiums for the life expectancy of the assured should be deducted from the total amount of the premiums as a credit in favor of the assured.
4. Same--Recovery of Damages Sustained. Record examined; held, to be sufficient to support judgment in favor of the plaintiff.

C. H. Tully, for plaintiff in error.
John T. Cooper, for defendant in error.

STEPHENSON, C.