Lambros

This case concerns the application of Insurance Code section 481 to appellant Vasillos S. Lambros’s life insurance policy, issued by respondent Metropolitan Life Insurance Company(MetLife). That statute provides that “(a) Unless the insurance contract otherwise provides, a person insured is entitled to a return of premium if the policy is canceled, rejected, surrendered, or rescinded, as follows: ... (2) Where the insurance is made for a definite period of time and the insured surrenders his policy, to such proportion of the premium as corresponds with the unexpired time....” (Ins. Code, § 481, subd. (a)(2).)

On respondent’s motion for summary judgment, the trial court determined that appellant’s policy did “otherwise provide.” We agree, and affirm the ensuing judgment in favor of MetLife.

Facts

On August 20, 1948, in Washington D.C., appellant bought a $100,000 whole life insurance policy from MetLife. The policy had an annual premium of $2,420, payable once a year on the anniversary of the policy’s purchase. The policy provided that payment of the annual premium maintained the policy for a period of 12 months.

The policy also provided that appellant could surrender…

I respectfully dissent.

In August 1948, Vasillos S. Lambros (Lambros) bought a whole life insurance policy from Metropolitan Life Insurance Company (MetLife). Lambros purchased the policy from a New York company in the District of Columbia and moved to California, from which, for many years, he paid premiums to MetLife. In 1998, Lambros paid the full annual premium and *51 then during the year covered by that premium exercised his right to surrender the policy and receive the cash surrender value. He also requested the return of that portion of the premium attributable to the period after the surrender of the policy—i.e., the unearned premium. MetLife refused to return the unearned premium. The majority hold that even though there is no reference in the policy to what happens to unearned premiums upon surrender of the policy, the provision for cash surrender value provides what the policyholder receives upon surrender of the policy, and thus the return of unearned premium is, in effect, excluded by the policy.

It is important to distinguish between cash surrender value and premiums. Under the express terms of the MetLife policy, when Lambros surrendered his policy, he was…

This case concerns the application of Insurance Code section 481 to appellant Vasilios S. Lambros's life insurance policy, issued by respondent Metropolitan Life Insurance Company (MetLife). That statute provides that "(a) Unless the insurance contract otherwise provides, a person insured is entitled to a return of premium if the policy is canceled, rejected, surrendered, or rescinded, as follows: ... (2) Where the insurance is made for a definite period of time and the insured surrenders his policy, to such proportion of the premium as corresponds with the unexposed time, ..." (Ins. Code. § 481, subd. (a)(2).)

On respondent's motion for summary judgment, the trial court determined that appellant's policy did "otherwise provide." We agree, and affirm the ensuing judgment in favor of MetLife.

On August 20, 1948, in Washington D.C., appellant bought a $100,000 whole life insurance policy from MetLife. The policy had an annual premium of $2,420, payable once a year on the anniversary of the policy's purchase. The policy provided that payment of the annual premium maintained the policy for a period of 12 months.

The policy also provided that appellant could surrender…