The Newberry herald and news. (Newberry, S.C.) 1884-1903, 1899-03-21
News and Courier.


premo Court, in it's decisions today,
rendered an important decision rela-
tive to mutual insurance companies
and assured
The decision Of the lower Court is
affirmed, where non. suit was en-
tered, as will more fully appear from
tho text Of the dcsision.
The opinion of the Court was rem
d dered by Associate Justice Pope,
land was concurred in by tho entire
Court.
After stating the case and the OBJ
jections to the ruling of the Circuit
Court the Supreme Court goes on to
say:
"We have examined tho case with
\ great care, for while contract for
insurance is nothing but contract
between parties, in its last analysis,
still it involves very nice care in Civ
ing a proper construction, because
Of stipulations outside of tho paper
embodying in general terms such
. contract. Here, for instance, the
tspolicy of the company makes refer
ence to bylaws and the application of
the insured for such insurance as
part Of tho contract of insurance, al
though, such bylaws and applica-
tions are not recited in the policy.
Hence in order to determine what
the contract between tho parties act
ually may be reference of necessity
must be had to those papers
''As the title given by law to the
defendant is what is known as a mu-
tual insurance company, TO distin-
7 guish it from what is known as the
old line or stock insurance compan-
les, of course one of the features of
the former is that persons whose
lives or property are insured by it are
members of tho insurance companies,
with liability to contribute for
membership therein, and plan of
assessment Of the members to cover
expenses and losses.
"Now what is the particular con-
tract here in question? 1t is that
the plaintiff agreed in hor application
for insurance to bo bound by the by
laws which tho defendant was by It's
charter authorized to prescribe. The
very policy issued sets forth: THAT
the amount of loss is to bo deter
mined as per charter and by laws
! of this company BY the written
application of the plaintiff for mem-
hershlp aud insurance she stipulates
1T is agreed that there is no contract
: of insurance until the application is
issued, subject to the conditions and
? stipulations therein contained. The
I'd section Of tho charler Of the COM
pany(See Act approved December %,
1904,) is in these words: Such in
surance to be for loss by fire, wind
rlightning, upon such terms as may
!. &3be fixed by the by laws of such cor
poration.' Section 7 of the bylaws
makes it the duty of tho secretary to
notify policy holders of assessm ents.
Section | provides that losses shall
y bepro- rata assessment. Section Ia
provides that property assured shall
be liable to assessment until tho pol
sSS'icy is cancelled. Section 10 is in
sSthese words: All assessments must
.8$be paid within thirty days aftor writ
ten notice if mailed. If not paid
! the policy shall be suspended, and
5Sbe liable to assessment until cancell-
ed Suspended policies may be re-
n instatcd without extra cost by assured
paying back assessments, provided
Is that the property be in tho same con
dition as when suspendod.'
"Now in this case at Bar, the
plaintiff herself introduced testimony
q showing that two assessments were
,6t'unpaid, to wit: One issued 9th OF
vi anuary, 1897; that tho secretary OF
the Az )clation notified her that hel
policy was suspended for failure tc
.}5 pay assessments on tho 9th Of Feb
ruary, 1897. That her property WI
81 destroyed by fire on the 18th OF
"a March, 1893, and that she did moi
# forward the money for the assess
.