Paul E. Plesha v. United States

This is an appeal from a judgment denying appellant, a veteran of the Second World War, recovery of $221.05, the unpaid portion of a special dividend due appellant under the provisions of his National Service Life Insurance policy. The District Court denied recovery, 123 F.Supp. 593 , setting off that amount as owed by appellant to the Government for his obligation to reimburse it for sums paid to the California Western States Life Insurance Company to compensate it for coverage extended to appellant during World War II under the provisions of the Soldiers’ and Sailors’ Civil Relief Act of 1940, 54 Stat. 1178 , 1179, 1183-1186; 50 U.S.C.A.Appendix, §§ 510, 540-554.

That Act provided, in part, that no insurance policy taken out before military service would lapse for the nonpayment of premiums while the insured was in service. If the serviceman died and the policy matured, all the unpaid premiums plus interest at the policy loan rate were to be deducted from the payment to the beneficiaries. If the serviceman desired to continue his policy after discharge, and he had not paid premiums while he was in service, he was required to pay all the back premiums plus interest at the policy…