Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1878-06-30
The Right OF Poucy Holders.

. T
There are thousands of Life Policies in
the State OF Wisconsin and the North
west which have lapsed by reason of non
payment of the premium; the owners of
which have since died. These policies
are valid claims against the companies
and need only to be prosecuted to render
them valuable. The practice Of the com
paaies, in inserting in their policies, vague
and meaningless clauses, has served to
conceal any right the policy holders
might have, and the deception has pre-
vented any action by the heirs OF tnoes
vino hold these policies.
Our attention has been called to de- 4
cision of our courts on policy which
elapsed, by reason Of non-payment
Of premium, and interest ona premium
note given in part payment Of premium.
The court held that the dividends on
the policy arising from the funds. in the
hands Of the companies, were the prop
erty of the policy holder, and that the
interest was consequently paid in adj
vance.
There is, however, another ground to
be taken yet stronger, and easier of de-
fence. '.''""27's''' vsz'5 'ss'era'-'7s'"T'ss"s
There is upon every policy, certain
definite and easily ascertained amount OF
money which remains in the hands Of the
company, from each and every premium
paid, after all demands for death, expen-
SEES and dividend have been satisfied,
| which is of the nature of q "bank depos-
it," and which in many cases, is sufficient
to pay for all the insurance to be done
by the company; during the whole term
covered by the policy. This fund in
case of lapse is coniscated by the COM
| pany to pay for the insurance but any
liability to the policy holder is denied.
The amount which would be necessary
to carry the insurance during any future
year Of the policy is as easily ascertained
as is that of the past, and if the company
has in its hands "bank deposit" sufti-
Gent to meet this demand inthe year in
which tile policy holder dies, it will be
compelled to pay the insurance.
This fact grows out Of the composite
nature Of premium Statute law has
already virtually decided that the 4" re-
serve y on any policy belongs to the pol
icy holder. This is the meaning Of the
law which obliges the company to main
tain certain reserve on every policy,
and any equitable court cannot but de-
eide that the policy holder, may at an
time withdraw it, or refuse this equit-
able right, and the q 6nnk deposit" or ire
serue' is retained, it can only be used by
the company, to pay for insurance upon
the owners life. The Massachusetts, Non
Forfeiture law is an expression Of this
fact.
TO allow company to retain the full
bank deposit as penalty for not paying
the premium, is to deliver the possessor
OF one weak brain into the power OF a
soulless corporation employing scores of
strong ones. T, say as much, is to say
that a man can be forced to pay for a
thing, but cannot obtain it after paying
for it.
AS an illustration Of what we mean
take a policy for $4,000 on the ten year
life plan The premium of $20193 is
paid in cash and note for six years. AT
the end Of the sixth year, the policy has
at'bank deposit" or reserve" of $957 .O6
about $500 of which is cash. The prem
ium Tor the seventh year is not paid. The
company lapses the policy and denies any
| LIABILITY unuer II. Inc nOtcS are not col
lectable, (but may serve as asse1s)and arc
an admitted surrender value to that ex-
tent. The 5000 in money is retained
Had the policy holder continued his paw.
ments, the company could have demand
ed no more Of him than his regular con.
tributions to the payment of other claims
by death. This would nat exceed during
the remainder of life $3.50 This would
leave $3.50, as retained without any re-
compense. But the worst feature in the
matter is the denying of all responsibility
bv the company.
!, 1t is by reason Of this principle, tina,
the party may, and has the right to with.
draw, or if the policy has been lapscd
!: and death occur, the heirs may collect Of
the company insurance for which the in
sured has paid.
The only, and the utmost. claim which
the company have upon the retiring
member is the "Insuranc e value'' d
his policy, which may be defined to be
1.-THE sum qoitb aellSch D0Sd IN 0dv0nce, I'm.
der the assumptions, ao0ugd eractly poo 70,
all the insurance which the company IS to
do under the p0lscy," should the insuraned
| remain, member. t7trotIqh the term.