23 Ga. App. 609 | Ga. Ct. App. | 1919
1. Under the provisions of the “automatically non-forfeit-able” clause of the original policy of life insurance here involved, the accrued loan value, until consumed, would operate to continue the policy in force as fully and completely as though the premiums had been paid by the insured from funds derived from other sources. Perkins v. Empire Life-Insurance Co., 17 Ga. App. 658, 659 (87 S. E. 1094).
2. Liability under the terms of a policy of life insurance, when assumed by another company, must be takén and construed subject to such “exemptions, modifications, and limitations” as are imposed by the contract of reinsurance. 1 Joyce on Insurance, § 131-A; Fireman’s Fund Insurance Co. v. Aachen & Munich Fire Insurance Co., 2 Cal. App. 690 (84 Pac. 253).
3. Where the insurance commissioner of this State, acting under the
4. The rule would not be altered by the fact that under another provision of the contract the reinsurer agreed that the amount of such “liens,” representing the reserve liability under the policies, should be insured in its own company, arid had guaranteed that the premiums for such- additional insurance should be taken care of from the profits accruing in its management of such reinsured contracts. Without ' this provision, the effect of the reinsuring contract would have been the primary assumption by the new company of the- face of the original policies, less the amount of the reserve liabilities represented by the “liens” set up in its favor; but under the obligation thus made, the reinsuring company became at once liable, in accordance with the terms of its agreement, for the full face value of the original policy, without any diminution to the extent and in the amount of the reserve liability which had accrued under the old policies—tentatively assumed to be lost on account of the insolvency of the original company. Under the quoted terms of the reinsuring contract,' however, the amount of the reserve liability which accrued under the old policies and which might in any event actually be intact for future delivery to the new company for the benefit of such policyholders was not to be to any extent available to policyholders either as loan value or as cash surrender value for a period of one year, and could be available then only to the extent of the amount thus actually turned over to it by the insurance commissioner. The judge did not err in sustaining the demurrer to the petition.
Judgment affirmed.