New York Life Insurance v. Chaves

Citations

• 21 N.M. 264
• 153 P. 303

Syllabus

<p>SYLLABUS BY THE COURT.</p> <p>All moneys returned or allowed in abatement of future premiums to policy holders in a mutual life insurance company, which arise by reason of an overcharge on the actual cost of insurance occasioned by the overestimation of the death rate and administration expenses and the underestimation of the earnings on premiums by way of interest and gains by reason of lapses and forfeitures by the insurance company when it fixes the arbitrary level premium in its policies, are “returned premiums,” within the meaning of section 2810, Code 1915, and, as such, are exempt from taxation under said section.</p>