84 Neb. 403 | Neb. | 1909
Action upon a policy of hail insurance. Plaintiff prevailed, and defendant appeals.
Defendant is a mutual hail insurance company organized pursuant to section 114 et seq., ch. 43, Comp. St. 1905. In June plaintiff made a written application for a policy in defendant company, and agreed that said application, together with the by-laws of the company, which were printed on the back of his policy, and the policy itself, should constitute his contract; that, if he did not pay any note given by him for premium when the same became due, defendant would not be liable for any
We have not been favored by plaintiff with a brief, but we are satisfied that he is not entitled to recover. Defendant is a purely mutual concern, without capital stock or resources other than the annual premiums paid by its members. The losses for each year must be satisfied from the premiums paid during that time. If by reason of excessive losses those premiums are insufficient to pay each policy-holder who has suffered a loss, defendant, in a sense, is insolvent for that period, and, under the statute as well as its by-laws, its available assets for that year must be prorated among those entitled to share in said fund. It is essential for the protection of those
The judgment of the district court is therefore reversed and the cause remanded for further proceedings.
Reversed.