Green-Mountain freeman. [volume] (Montpelier, Vt.) 1844-1884, 1874-05-20
Important Life Insurance Case.

III tlitSC UstNS, Nl1tIi TIE SUBJECT vi lllt
insurance is attracting much attention
from the public, the question of the re-
spective rights and interests of both 1.-THE
insurance companies and the assured is
daily becoming more important, and the
necessity of the legal and just settlement
of the points of difference between the
parties to the contract of insurance CORES
pondin9lv increases. As vet the law of
insurance is far from being entirely settled,
and we are glad to see the various new
points of honest difference of opinion be-
tween such parties brought before the
courts for adjudication. A suit has just
been brought in the United States Circuit
Court of this district, by Mrs. Maria b.
Herrick. of Lacon. Illinois. against the
National Life Insurance Company, of
Montpelier. by her attorneys, \. V. Spaul-
ding and f. J. Phelps, of this city. to re-
cover for 81, 800, the amount of II policy
of insurance on the life of her husband,
Charles Il. Herrick. formerly of this city,
The facts of the case are briefly these: In
1854 Charles r. Herrick was insured by
said company for the term of his natural
life a. for the benefit and sole use of his
wife" The annual premium was S54. %.
The policy was kept alive for fourteen
years, when Mr.. Herrick conveyed his in
terest back to said company without the
knowledge or consent of his wife. He
died May IS. 1870. The year previous to
his settlement with the company he was
unfortunate in his business affairs and in
formed his wife that he intended to sell his
policy to the company, on account of his
pecuniary inability to meet his annual pre-
miums. She forbade him doing so. and
tho a-Ei if -hn f.orIl1
keep the policy alive by paying the annual
premiums herself, ut the same time remit
ting the amount of the premium for 1868.
The company replied that she could. but
returned to her the premium she had sent
them, with information that her husband
had already paid his premium for that
year. Shortly after the premium became
due in 1869, her husband informed her
that he had sold his policy to the company,
and had received the consideration there
for. She at once wrote to the company
asking if they would restore said policy
on her repaving them the amount they
had paid her husband for the policy, and
her paying the annual premiums there
after. They replied that being a Mutual
Company they We're unable to do so. Due
notice and proof of the decease of her hus-
band was subsequently given to the com
pany and payment of the loss demanded,
which the company refused to grant
Whereupon the present suit is brought by
the plaintiff to recover the full amount of
said policy, on the ground that her husband
could not dispose of her right and interest
in said policy under the circumstances in
this case
The defendant in this case, the National
Life Insurance Company of Montpelier,
at the beginning of its existence, in 1850,
adopted an economical, prudent and judi
cious plan of conducting its business
which has not only commanded the respect
of its rival companies, but has also cspe-
cally attached to itself the hearty co-opc-
ration of Il large number of the leading
business men of this and other states, who,
as stockholders through insurance, are
personally interested in its welfare. and
will sustain its officers in any proper
course of action which they may decide
upon. Now, therefore, that the above
claim is made, the public may rest satisfied
that the ultimate decision of the company
will be of a character that will not throw
any discredit upon its present high reput.-
ton, and will be fully sustained by the
community as well rs the courts.-Frco
Press.