Bouvier

Bouvier appeals from a judgment in her suit against the United States on her husband’s National Service life insurance policy N 18-30-55, hereafter policy 055, issued by the Veterans Administration, hereafter the Insurer, holding that the policy had expired by the nonpayment of premiums.

Prior to January 1, 1941, Bouvier had this policy and another, N 229-18-46, hereafter policy 846. The premium on each was $3.25 payable monthly. In December of 1948, insured was notified that policy 055 would expire on February 28, 1949, unless renewed by an application.

The insured, on January 10, 1949, filed applications for renewal of both policies and submitted his check for $6.90, requesting that the check be applied “to cover insurance for $10,000.00.” This amount exactly constituted the new premiums required on both policies after renewal.

The Insurer, with whom this application was filed, sent a letter to the insured, dated January 20, 1949, which advised that the payment of $6.90 had been applied $3.25 for the January premium of each of the policies and that the insured had a credit of 400 which could be deducted from the next premium. The letter acknowledged that the premium on policy…