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Supreme Court of the United States - 292 U.S. 337
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The petitioner sought benefits under War Risk Insurance taken out by her son, who died while enlisted in the Naval Service. The United States denied liability, claiming that the policy lapsed for nonpayment of premiums. The District Court ruled in favor of the petitioner, but the Circuit Court of Appeals reversed the decision. The insured's payments were deducted from his pay until the end of his first enlistment, but no deductions were made thereafter. He did not provide a new authorization for deductions, and no premium was paid. The policy required monthly premium payments to be deducted from the insured's pay or deposit with the United States, unless the insured elected otherwise in writing. If the United States owed the insured enough to cover the premium, it would be treated as paid even if no deduction was made. The insured was entitled to pay from the date of his enlistment until his death.
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