The New York herald., 1870-02-03
SUPREME CouaI =: AMasss.
The British Commercial Insurance Com.
puny-An Interesting Question TO Policy
Hoidcrs.
nd Gard

The British Commercial Insurance CoW.
pnny-An Interesting Question 10 Policy
Holders.
Before Judge Cardozo.
Mooney us. The british LUe Insurance Company
ct GL-Ths was motion on the part OF the Cont.
mental Insurance Company to vacate an order made
Dy Judge lngraham, directing that the receiver an.
pointed IN the matter should Q reinsurance TO
be made OF all the rsks IN the Northwestern Mutual
llfe Insurance Company, under subsIsting policies
III which The parties insured should within thirty
Gays alter the GATE Of the order le with hc
written request Tor such insurance, and OI thoss
vino presented petition for sucn purpose to the
court, npon tne tel nis o reinsurance exceeding
TIC net va Ol the pocles, according 10 the legal
standard Of interest anu m0rta.ity IN lhis Stala.
Tne order Of tue court further stated that the re-
insurance. or tue policies Ot all poncy holders who
should not at the expiration OF SAID thirty days havs
designated The company tn whicn they des REQ to pe
rcnsured be effected by the receiver wtn the Conti-
mental Lie INSURANCE Company upon terms OF re.
Insurance not exceeding net vaiue or the poll
c,cs. That II either OF SAID two last named com
panies should decline to the reinsurance OF the
portion OI the policies hicn m,gnt be u lotted To
them respectively, upon the terms prescribed, or
Within nas ney ay. ,ne a,ss seces ,S ns
ton OF said thirty days Of Its Willingness
10 make such reinsurance, then anu IN
insurance al said policies with tue other Ol SAID
Two companies and II neither Of said companies Will
report the fact TO the Court. The proceednss were
also stayed Tor Thirty days from the entry or the
order 70 AFFORD time ~ effect the arrangement, and
the order further directed that the order previously
made III the action directing The reinsurance To De
maze by the receiver with the Continental Lie lnsu
rance Company. anc oil prOceedin,sS hereunder ue
and they are hereby vacated, ana tnat the order
heretofore made IN this action be modified 80 rs 10
permit the arrangement herein contained IL ap-
peAred 1rOn the statements set ortn that Brlt.sn
commercial Life Insurance Company some time
SINCE established branch III tls Guy and deposited
Accoramg TO the allegations that COM
pany subsequently fahed, and proceedings
were az once instituted Dy one oi the
receiver made al arrangement with the Continental
Life Insurance Company TO reinsure all .he policy
hoder5, aud the court inaue an order permitting
hin " make Lnls contract. Meanwhile an appiicd-
non WAS made on bebalI Of q large majority OF tne
policy noders that the reils arancc pe maue with tho
Northwestern Company, OF Milwaukee, anu au order
staying proceedings until their petition should ue
passed on was granted Mr. blxby on the Same day
made the contract Win the Continental Insurance
Company. Al understanding was come 10 among
the parties IN interest hat the poncy holders should
be allowed To select tneir own cois panies and an
order maze by Judge lnsrahan above.
The Continental. INSURANCE company now moved
to vacate tue ofder. claiming lnat the receiver
under the orders Of the court made contract with
them Tor reinsurance vi Al the policies anu tnat the
policy holders were bound by that contract. IL was
CLAIMED, how ever, on benaif OF the northwestern
Lille Insurance Company, Iii whose behalf 4 petition
was read 70 which neafiy two hundred names
were attached, representing In all $3v0 0U0 request
ing 10 be reinsurel In tnat company. fue petilon
luither states tnat they prefer the Northwestern
Company us purely mutual company anu oUJect TO
shc Nobuutubdi CoWpdHf. COuNscl, III cApidlulnA
,hls Objection, stated tnat IL appeared Dy tneir
p0r@ 20 the insurance Department that their
casn receipts down to 1sos were sl55',.oo,
their cash capltai 100000, and their ex-
pendttures but t6IS3 wnich shou.d leave
them wish cash assets OF 81 059 4l6. hut
their report for that year gave them OF cash and
loans but S50l. i29-a denct Oi $537,os6. 1ney ex.
planned this III some way oy unpaid premiums; Dat
admitting the explanation, tlc mad, oy Their own
statement Including unpaid premiums. premium
notes, bills receivable and Office furniture, but
$2C67 IT'S, not eight per cent on tner rsss, which
amounted to s2f ly7, f50 1ne Continental Company
proposed TO take tle money tnen LII The naiids uf
ths INSURANCE ueDaItnens " portion u II, AMI