Buchanan

Olive Mae Buchanan (hereinafter referred to as plaintiff), the named beneficiary in a policy of life insurance issued to her husband, Russell L. Buchanan, instituted this action in a State court against the Equitable Life Assurance Society of the United States (hereinafter referred to as defendant) seeking to recover the “face amount” of said policy. Defendant, properly, caused the action to be removed to this Court, Federal jurisdiction being grounded upon the provisions of Title 28 U.S.C.A. § 1332 (a) (1).

The controversy between the parties revolves around the legal effect, if any, to be given to said life insurance policy. While there is no substantial difference between the parties insofar as the facts of the case are concerned, there is a very considerable dispute as to the legal effect of these facts. Defendant contends that the policy lapsed due to nonpayment of a premium which was due prior to the death of the insured, 1 while plaintiff takes the position that the facts of the case are such as to estop defendant from raising that defense.

From the evidence adduced at the trial of this case, it appears that during the first part of March, 1955, one Sims, acting in his…