The daily morning journal and courier. [volume] (New Haven, Conn.) 1894-1907, 1898-04-27
COMMISSIONER BELTS WINS
In His Suit Against the Aetna Life
An Agreement Reached

counsel agreement was reached to-day
in perhaps the most important insur-
ance case that ever sought a conclu-
sion in the courts of Connecticut. The
case Is that of Frederick A. Belts, In
surance commissioner, against the Act
ma Life Insurance company of Hart
ford. 1t has been in litigation for over
two years and involved enormous in
terests.
On the fourth day of March. 1896,
Insurance Commissioner Bettes served
upon the president and board OF d.
| rectors at the Aetna Life Insurance
company an order which in substance
called for change in their methods OF
bookkeeping. BY this order the Aetna
Life was ordered to discontinue trans
| ferring reserves or assets from the
mutual to the stock department other
than the sum of $4,000 per annum; to
transfer to the mutual department
from the stock department the sum OF
| Sal, 44196 with interest; to transfer
to the mutual department from the
stock department the present reserves
on outstanding policies derived from
| policies issued originally in the mutual
| department with all the profits which
| had accrued to the stock department;
and to apportion among its participant
ing policyholders the sums to be trans
ferred to the mutual department.
| The insurance company refused TO
comply with the order and the contro-
versy became a matter for the courts.
In the suit which was instituted the
| insurance commissioner made COM
plant as follows:
That the defendant had authority to
make contracts of life insurance; that
it adopted plan called the mutual
plan; that it made contracts upon this
plan; that by these contracts 1t has
agreed that all gains and profits, less
certain deductions, shall belong to the
mutual policyholders; that all gairs
and profits from paid-up policies issued
in place of surrendered mutual policies
shall belong to the mutual department
for the benefit of the persisting policy
| holders.
The complaint further averred that
the defendant had violated it's con-
tracts by transfers of large sums be-
longing to the mutual policyholders to
the stock department; that these sums
had never been returned; that the COM
pany issued paid-up stock policies for
surrendered mutual policies and took
all the gains and profits derived from
such policies from the mutual depart
ment, where they belong, and that the
mutual policyholders had been and
were being deprived of all benefits
| therefrom.
To these complaints the insurance
company set up defenses, and to these
defenses the commissioner demurred.
On the 4th day Of March, 1898, Judge
Shumway handed down decision on
these demurrers sustaining the COM
missioner.
The controversy then continued, and
1 1t was believed that litigation might
go on for years. Recently, however,
the eminent counsel in the case met
frequently and finally reached con-
clusion in the shape of the following
agreement:
Frederick A. Belts, Insurance Com
missioner, VS.. Aetna Life Insurance
Company.
Hartford County, Superior Court,
1.-THE 26th day of April, 1898.
JUDGMENT.
In the above entitled cause, and since
the Judgment of said court, sustaining
the PLAINTIFFS substituted demurrers,
which were filed December 1st, 1898,
the parties have impaired, and reach
ed settlement of the controversy and
have agreed that the following decree
shall be entered in said cause: Now.
therefores in pursuance of said agree
ment, it Is ordered, adjudged and de-
creed,
THAT the defendant, the Aetna
Life Insurance company, transfer its
stock to its mutual department, in
cash, the sum of three hundred and
seventeen thousand, seven hundred and
one dollars ($317,70D, being the sum of
one hundred and forty-one thousand,
four hundred and forty-one dollars
and thirty-six one hundredths referred
to in the complaint with interest at 4
per cent, from the time it was paid
out, to date.
2-That the defendant, the Aetna
Life, Insurance company, transfer
from its stock department to its mu-
tual department, reserve assets to the
amount of at least one million dollars,
face value, in good first mortgage Sc
curities, averaging net six per cent,
annual interest, the mutual department
to assume the policies on which such
asests are held in reserve, such policies
being In substance paid up policies is
sued originally upon the half-note or
other plan, by the mutual department
under the vote Of August 10, 1861, re-
ferred to in the complaint, for which
original policies, on surrender, the paid
UP policies were issued from the stock
department. If, upon examination by
the insurance department, which exam
ination the defendant is hereby order
ed to permit the assets held In reserve
upon such paid policies as just describ-
ed, exceed one million of dollars, then
the defendant, the said Aetna Life In
surance company, shall transfer to its
mutual department similar good secur-
tiles averaging net six per cent. an
nual interest, and equal in value to all
the reserve upon paid up policies now
in force given upon surrender of poll
cies issued by the company up to and
including the year 1874, under the said
vote of August 10Th, 1861, the mutual
department to assume all such paid up
policies. All securities so to be trans
ferred from the stock department to
the mutual department, under this par
agraph of this order are TO be approx
| cd b1y tho ips,,rance dana rtment Of the