Schwartz

On Aug-gust 2, 1924, Henri Charles Schwartz applied to the Northern Life Insurance Company for insurance upon his life in the amount of $25,000. On that day he gave to the agent of the insurance company a 30-day note, payable to and indorsed by him.self, for $900, in settlement for the first year’s premium. He received a receipt in the following terms:

“Conditional Binding Receipt.

“Oakland, Calif., Aug. 2, 1924.

“Northern Life Insurance Co., Seattle, Wash., received from Henri Charles Schwartz an application bearing same number as this receipt for $25,000 insurance on his life and nine hundred (note) dollars in cash, in full settlement of premium thereon: Provided, settlement for the full premium has been previously made, the insurance applied for (not in excess of limits below) shall take effect when an examination of the appli *143 cant satisfactory to the company has been made by its medical examiner: Provided, nothing is developed as existing at or prior to the time of said examination which would ordinarily cause rejection at the company’s home office for the plan and (or) amount of insurance applied for. If application is not accepted, the settlement made as above stated…