Schick

In 1924 Joseph Schick became the insured under a policy issued by respondent, known as a “Yearly Decreasing Term Policy”. This policy was continuously kept in force by the payment of annual premiums except in 1931, when the policy lapsed, but was later reinstated. With respect to that lapse the evidence shows that in 1931 the insured told respondent that he would be unable to pay the total annual premium in one payment. He was informed by the company if a person were unable to make his yearly payment in one lump sum the same could be paid over a .period of six months by the payment of ten per cent on the due date, and specified on the sixth month. Appellant accepted that method of payment and paid thirty per cent of the premium due, and thereafter received a. printed form known as “Application for Extension of Time”. This he signed and returned, and then for three consecutive months continued to pay the installments at the rate of ten per cent of the total amount of the premium. After the expiration of the sixth month he was informed by the company that his policy had lapsed for the reason that the rules required the balance of 'the premium was payable in full on the sixth month.…