Cross

In its background this ease is similar to United States v. Buzard (No. 5727) 33 F.(2d) 883 , this day decided. In October, 1918, while he was in the Army, appellee took out $10,000 war risk term insurance, and paid the premiums thereon to September 1, 1919. Effective on the latter date he converted $5,000 thereof into a policy on the thirty-year endowment plan, and thereafter paid the premiums thereon to and including March, 1920. The other $5,000 of the original policy lapsed for failure of premium payments after September 1,1919. Disregarding the subsequent transactions, the insured brought this suit upon the original policy, alleging total and permanent disability as of and from October, 1918. This the government denied, and set up the converted policy and the proceedings had in connection therewith as affirmative defenses. In his reply thereto, plaintiff did not suggest fraud or mistake in respect of the issuance of the converted policy, but alleged only that at the time it was taken out he “was already permanently and totally disabled,” and that therefore the original policy had fully matured. He did not aver that either party had knowledge of that fact or acted in bad faith…