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SOUTHERN MD. ELEC. CO-OP., INC. v. TRAVELERS INS. CO.

No. 1463, September Term, 1981.

52 Md. App. 140 (1982)

447 A.2d 487

SOUTHERN MARYLAND ELECTRIC COOPERATIVE, INC. v. THE TRAVELERS INSURANCE COMPANY.

Court of Special Appeals of Maryland.

Decided July 12, 1982.

Attorney(s) appearing for the Case

Patrick M. Pilachowski, with whom were Earle K. Shawe, Stephen D. Shawe and Shawe & Rosenthal on the brief, for appellant.

Alan N. Gamse, with whom were Thomas J.S. Waxter, Jr. and Semmes, Bowen & Semmes on the brief, for appellee.

The cause was argued before GILBERT C.J., and WILNER, J., and EUGENE M. LERNER, Associate Judge of the Fifth Judicial Circuit, specially assigned.

WILNER, J., delivered the opinion of the Court.

In October, 1961, appellant (SMECO) purchased a group life insurance policy, for the benefit of its employees, from appellee (Travelers). Effective September 30, 1979, SMECO discontinued the policy, replacing it with insurance from another company.

The Travelers policy provided for both term insurance, paid for by SMECO, and "paid-up" insurance, paid for by the insured employees. At some point, a dispute arose...

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