Wisting

The insured paid" premiums on a $5,000 life insurance policy for nineteen years. The premium which fell due two months before his death was not paid when due nor within the 30 day period of grace. It is conceded by both parties that if the interest on the insured’s policy loan be accrued from day to day for the purpose of determining the “existing indebtedness hereon, with interest” (under the provisions of the automatic premium loan clause), then the loan value was insufficient to carry the policy up to the date of death, but if such interest be not so accrued and included then the loan value would be sufficient to carry the policy a few days past the death of the insured. It is also conceded that under the provisions of the policy loan agreement, interest on the loan was not due until four months subsequent to the date of the insured’s death.

The trial court held that appellant could not charge the interest on the loan against the policy before it (the interest) became due, and entered judgment for plaintiff, the widow of the insured, who was the beneficiary under the policy.

Neither party has been able to discover Oregon statutory or case authority to support its contentions…