120 Ky. 790 | Ky. Ct. App. | 1905
Opinion by
Affirming.
The Sun Life Ins. Co. of America is a corporation organized under the laws of this State. It is not a mutual, but a stock company. It was engaged in what is known as “industrial insurance.” It had issued policies of insurance on the lives of various persons. It desired to retire from business, and on December 9,1902; entered into an agreement with the Metropolitan Life Ins. Co., by-the terms of which the latter company agreed to assume its • outstanding policies of insurance, with the consent of the several holders and owners thereof, and to carry out all the provisions of such policies. It was also provided that the Metropolitan Co. was entitled to receive all premiums thereafter paid on the policies which it assumed with the consent of the owners, and was to pay the death claims arising thereunder. It was further provided that, where the holder of.a policy refused to release the Sun Co: and consent that the
The Sun Co. issued to the appellant a policy of insurance on her life, by the terms of which, in consideration of 10 cents per week, it agreed at her death to pay her personal representative $144. She had been paying on it some time when a contract was entered into by the Sun Co. and the Metropolitan Co. It is averred in her petition that the Sun Co. has a large reserve fund, and that her part of it amounted to '$20.13; and she seeks by this action to recover that sum for herself, and other sums for a
In subdiv. 3, sec. 659, Ky. Stats., 1903, it is provided: “On policies of industrial insurance, where the weekly premiums are-less than 50 cents each, it shall be optional with the company issuing said policy, to pay either the cash surrender value, or issue a paid-up policy of insurance, and upon such payments, the company shall be . absolutely released from all further claims or demands whatsoever, under or by reason of said policies, which shall then be can-celled.”
This provision of the statutes gives the company the option when premiums are less than 50 cents, either to pay their cash surrender value, or issue a paid-up' policy of insurance, and upon such payment the company shall be absolutely released from all further claims or demands whatsoever -under the terms of the policy. If the appellant had never released the Sun Co., and had made certain yearly payments, and then had failed to pay a premium, she would, under another clause of sec. 559, Ky. Stats.,
The judgent is affirmed.