Hayden v. Franklin Life Ins.

Citations

• 136 F. 285
• 69 C.C.A. 423
• 1905 U.S. App. LEXIS 4456

Syllabus

<p>1. Benefit Insurance — Evidence—Articles of Association and By-Laws.</p> <p>In an action on a policy of insurance issued under the assessment plan, it is competent for either party to introduce in evidence the articles of association and by-laws of the company in determining the obligations and rights of the parties.</p> <p>2. Same — Policy Contract on the Assessment Plan.</p> <p>Although the policy, under the head of “Insurance Plan,” gives a table of quarterly payments to be made by the assured opposite designated age periods, varying therewith, it does not fix upon it the character of an ordinary life policy contract at a level premium at the time of entry, so as to subject the policy, after default by the assured, to the provisions of the nonforfeiture law of Missouri, where the policy contains the further provision that “should the Emergency Reserve Fund, or any part thereof, be used as aforesaid, its impairment may be made good by an assessment in addition to the regular Mortuary Call.” Such stipulation brings the policy within the designation of one under the assessment plan, as defined by section 7901, Rev. St. Mo. 1899.</p> <p>3. Same — Effect of Reinsurance Contract.</p> <p>Where a Missouri insurance company issues its policy under the assessment plan conformably to the state statute, and afterwards makes a contract of reinsurance with an Illinois life insurance company, approved by the Superintendent of Insurance of the former state, and the reinsuring company, in writing, assumed the outstanding policy in suit, according to its terms and conditions, and the assured thereafter pays to the reinsurer one or more quarterly premiums, as theretofore to the original assurer, the reinsuring company cannot be held, as under an ordinary life insurance contract, on the level premium plan, notwithstanding the consideration expressed in the reinsurance contract between the companies does not contain the word “assessments.”</p> <p>4. Same — Net Value of Policy at T