136 Mo. App. 5 | Mo. Ct. App. | 1909
Defendant is an assessment life insurance company organized under the laws of Illinois, and was formerly known as Knights Templars & Masons Life Indemnity Company. Under its original
It is argued by counsel for defendant, that because of the indebtedness of the death fund to the contingent fund, the directors would have the right to order an assessment even if they had not paid the Pennsylvania losses out of the death fund. We do not see on what theory this can be true. Assuming the debt was incurred in good faith and not in fraud or by acts of the directors which were ultra vires, they could have checked the $21,000 out of the death fund as a payment on the debt and then have levied an assessment to meet claims; because then the death fund would have been exhausted. They took no such course, but treated the fund as having money available to pay claims, and
The judgment is for the right party and we order an affirmance.