Arzner

During the life of a $10,000 war risk insurance policy the insured, Clarence P. Arzner, appellee, was totally and permanently disabled. Premiums were paid therefor until January, 3919*. On March 1, 3920, the insured reinstated and converted Ms insurance to an ordinary life contract upon which he paid the premiums. On February 28, 3921, plaintiff requested that this policy be reduced to $5*000, and that he be paid tho cash surrender value for the $5,000 insurance which he discontinued. In pursuance of this request he was paid $45.20, representing tho cash surrender value of the $5,000' insurance surrendered bv him at that time. Thereafter he surrendered the balance of $5,000 and was paid the cash surrender value thereof ($18.-30). It is contended by the government on this appeal that, inasmuch as the insured had surrendered Ms reinstated insurance for the cash surrender value thereof, he could not take advantage of the act of Congress of July 3, 1930 amending section 307 of the World War Veterans’ Act so as to permit a holder of subsequent veterans’ insurance policies to sue upon an original contract. Tho reason advanced is that tlio veteran, having elected to surrender his…