Allyn

The appellee brought an action for a declaratory judgment to have its obligations determined under a life insurance policy, No. 1,714,176, issued October 28, 1932, for $3300 upon tie life of Arthur Allyn. The premium was $28.48 each quarter payable on the 18th of January, April, July and October. Policy years were to be computed from October 18, 1932. It is undisputed that the premiums were paid to and including April 1934 although two of the payments were belated and were received after the due date accompanied by a health-certificate as required by the terms of the policy. The quarterly premium due July 18, 1934 was not paid. A year and four months later, on November 27, 1935, the insured sent a personal check dated November 27, 1935, for $28.48 to the appellee’s home office in Philadelphia. This check had on its margin the number 1,714,176, which is the number of the policy in dispute.

At that time the insured had another policy of insurance numbered 1,714,177 issued by the appellee, upon which a premium note for $165.90 had been executed by the insured. The Insurance Company applied the amount of the check, $28.48, upon the interest due upon this premium note ($9.12), and the…