11 Iowa 115 | Iowa | 1860
The plaintiff brought suit to recover certain assessments made upon a premium note, given by the defendant which read as follows:
“For value received in policy 286, dated the 11th'of May-1857, issued by the Iowa State Insurance Company, I promise to pay to the said Company the sum of one hundred and thir
(Signed) William Puossee.
Plaintiff claims that upon the 22d day of October 1857,' an assessment of $24,30 had been made upon the note of said defendant in accordance with the articles of incorporation and by-laws of said Company, and that the said sum was due prior to the commencement of the suit.
The defendant in his answer admits the execution and delivery of the note, and that it was given in consideration of a policy of insurance issued to him; he further admits the right of the Company by virtue of their by-laws, to make and call in assessments upon their premium notes and also their right to declare all policies forfeited when such assessments are properly made and not paid. But defendant claims that he refused and neglected to pay to plaintiff the amount assessed to him above stated; that for the reason of such failure the plaintiff declared the said policy void, for which said note was given; that by this act of plaintff, defendant ceased to be a member of said Company; that the consideration for which said note was given, had, by this act of the plaintiff, entirely failed, and that defendant was not liable for the same, or any part thereof. To this answer plaintiff demurred, the demurrer was overruled by the Court and judgment rendered thereon against plaintifffrom which ruling this appeal is taken.
The question presented is, whether the Company by their act in declaring the policy of defendant forfeited, deprived themselves of the right to recover the assessments then due upon the note given by defendant.
■ The premium notes of a Mutual Insurance Company become the capital of said company. When a person becomes insured in this kind of a company, he executes his premium note with a full understanding that in case, the Company sustain any losses, (in consideration of his policy)
The demurrer should have been sustained.
Judgment reversed.