White v. Provident Life & Trust Co.

Citations

• 237 Pa. 375
• 85 A. 463
• 1912 Pa. LEXIS 947

Syllabus

<p>Corporations — Insurance company — Mutual companies — Surplus — Distribution of surplus money among policy holders — Equity —Jurisdiction.</p> <p>1. Where the charter of a life insurance company provides: “That all the net profits to be derived from the business of life insurance, after deducting the expenses of the company, shall be divided pro rata among the holders of the policies of such life insurance equitably and ratably, as the directors of said company shall and may from time, to time ascertain, determine and report the same for division,” and the company has accumulated in its insurance business a large surplus representing net profits of such business, the directors may not award to the holders of matured policies arbitrary sums based on no calculations by an actuary or by themselves, but they are bound to ascertain and pay over to such policy holders their equitable and ratable proportion of the surplus.</p> <p>2. Equity has jurisdiction in such a case to compel the distribution of net profits and the allotment to the policy holder of his pro rata share thereof.</p>