Page:Federal Reporter, 1st Series, Volume 5.djvu/442

 430 FEDERAL REPORTER. �unfortunate, for tben we bave a paroi con tract of insurance. As w« have already seen, ail the facts material to the risk were known to the insurance company, and it agreed to insure the plaintiff on his cargo of sait for $45. The premium was paid, and the agreement was complete in ail its parts before any effort was made to reduce it to writing. �It is now well settled that contracts of insurance may be made by paroi unless prohibited by statute. Relief Ins. Co. V. Eggleston, 96 U. S. 674; Sanborn v. Fireman's Ins. Co. 16 Gray, 448. �The demurrer is overruled. ���Gaedneb V. Union Centeal Life Ins. Co.* �{Circuit Court, S. D. Ohio. December, 1880.) 1. LwE Insubancie — Intbrest dpos Loaks — Pbemiums — PoLicr Con- �STEtrCTION — PORFBIT0RB. �Where a paid-up policy for $1,500, isBued on the surrender of a previens policy, recited as a part of the consideration for its issuance " the annual interest of $24.18 to be paid on or before the twenty- eighth day of Gctober in every year during the continuance of thia policy, and of ail loans outstanding" thereon, and aclcnowledged the receipt of a sura entitling the assured, under the original policy, to a paid-up policy for $1,.^00, the following indorsements appeared upon the policies: On the original, "Loans ont, $403;" and on the paiàiup policy, " Loana outstanding on Oint. Mutual policy 1789, sun-endered, $403;" and there was no other evidence as to how the amount of interest was arrived at, or tte condition in which the principal was held. The policy provided that the non-pay- ment of " premium a, * * * on or before the day upon which they became due," forfeited the policy ; and the annual interest was not paid. IJçld, that the sum of $403 v/as a loan, and that the annual interest si ipnlated for was not a premium, the non-nayment of which would forfeit the policy. �The policy sued on was a paid-up endowment policy. It matured on the twenty-eighth of October, 1879, during the life of the assured. �*Reported by Messrs. Florien Glauque and J. 0. Harper, of the Omcin- �nati bar. ,, ����