The news & observer., 1896-12-11
IMPORTANT INSURANCE CASES
They Involved the Validity of the Reap
portionment Rates.


Two cases against the Mutual reserve
Fund Association, involving the validity
of the e-apportionment rates of assess
ment. made in 1895, were decided at the
present term of the Superior court
Of Craven county. This re-apportionment
affected 10000 members, whose insurance
aggregated S100.000000. The action Of
the company was sustained, and the reap
portionment declared just and legal
The following is the judgment in one of
the cases:
This action, coming on to e tried at
this term of the court, before Robinson.
Judge. a jury having been waived by
counsel for the plaintiff and defendant,
and being argued by w. w. Clark, coun-
sci for plaintiff, and John w. Hinsdale,
counsel for defendant, the court finds the
following facts:
/. That on the 10th day of June, 1888,
the defendant issued to the plaintiff a
certificate of membership or policy of in
surance on his life, numbered 13, 239, for
the sum of $4,000.
2. That on the 18th day Of July, 1889,
of said certificate or policy referred to,
another certificate of membership, or
policy of insurance on his life, in the sum
of $1,000, numbered 1929.
8. That the contract of insurance con
sisted of said policies, and the applications
upon which they were issued, and the con-
stitution and bylaws Of said defendant
association.
4. That on the 10Th day Of June, 1895,
the said defendant association, by its
proper officers, and by resolution duly
passed on that date by its board of direc-
tors, established new rate Of assessment,
wherein and whereby all the members OF
the said association who had been such
members before January, 1890, were as
sessed as of the age determined by adding
to the age of entry one-half of the differ
ence OF the time between the date of their
becoming members of said association,
and the said first day of January, 1895.
5. That the said change so made in said
rates of assessment was legal, and pursu-
ant to the law and the constitution and
bylaws of the said defendant association.
6. That the said change so made in the
said rates OF assessment was just, reason
able and proper.
Z. That the apportionment of said as
.sessment, made according to said rates so
charged, was just, reasonable and proper.
8. That in accordance with, and in
pursuance OF, the said resolution Of 1895,
and the rates of assessment so establish
ed and the constitution and bylaws of the
said association, the said board of direc-
tors, on or about October /, 1895, duly
levied an assessment upon the entire men,
bership of the said association, and the
executive committee duly apportioned the
same among the members OF the said
association.
8. That under said assessment and ap-
portionment, the amount of the assess
ment against the plaintiff was $4S90,
which was due and payable thirty days
from the 1st day of October, 1895.
10. That the plaintiff received due no.
tice Of said assessment.
II. That the plaintiff failed and refus-
ed to pay the said assessment, and has
never since paid or offered to pay the
same,
II. That by reason Of the failure of the
said plaintiff to pay the said assessment,
so due and payable thirty days after the
1st day Of October, 1895, the certificate
OF membership, or policy OF insurance, and
the membership of the said plaintiff ter
minated and ceased, and became and was
null and void, and all the rights, interests
and benefits of said plaintiff so acquired,
or to which he was otherwise entitled
under and by virtue of said membership
and certificate Of membership and policy
of insurance, and all annual dues, as
sessments and premiums therefore paid
by him to said association, under the said
certificate of membership or policy of in
surance, were forfeited to the said de-
fendant association.
The court finds the following conclu-
sions of law:
4 That the plaintiff is entitled to recover
nothing from the defendant.
Thereupon, on motion of J. w. Hins-
dale, defendants attorney, it is considered
and adjudged that the defendant go with
out day, and that it do recover against the
plaintiff and the surety upon his prosecu
ton bond the costs of this action, to be
taxed by the Clerk.
w. S. OBJ. ROBINSON,
Judge Presiding
In the other case there was verdict of
the jury and a judgment of the court in
favor OF the defendant, declaring the
change OF rates of assessment legal and
valid. The association was represented
- NJ Tohx. II;-.JoIo 4l,.e a.+~-