144 Mo. 157 | Mo. | 1898
The relator is a corporation duly incorporated under the laws of the State of Colorado. It was organized and incorporated in 1894. In 1896 it amended its articles of incorporation, and the objects of the incorporation as set forth in its amended articles of incorporation are as follows:
“Section Four. The objects for which said association is formed are to promote social and fraternal intercourse among ourselves and our associates; to bestow
“Section Six. Said association shall have power to make and adopt a constitution, by-laws, rules and regulations for the admission, suspension, expulsion of members and government of this association and all subordinate lodges; for the collection of assessments, fees and dues, and shall prescribe the number and duties of all officers and members. Shall prescribe the manner of safely keeping and paying out all moneys, and may alter, modify or change the constitution, bylaws, rules and regulations, or these articles of incorporation at will.”
By section one of the articles of incorporation it is provided: “The corporate name of this association shall be: ‘The Supreme Lodge of the Fraternal Union of America.’ ”
On or about March 1, 1896, this corporation commenced to do business in the State of Missouri, and continued to do business therein by organizing subordinate lodges, and issuing to the beneficiary members of such subordinate lodges benefit certificates under the provisions of its constitution and by-laws adopted under the foregoing articles of incorporation. These
First. Because the said association, by virtue of its by-laws, issues, paid-up endowment certificates of insurance to its members as beneficiaries, and which as a fraternal beneficiary association it can not legally do under the laws of this State.
Second. Because the plaintiff by its by-laws provides for the payment of insurance to its members, as beneficiaries, in cases other than those of temporary or permanent physical disability, either as the result of disease, accident or old age.
Third. Because the said plaintiff issues policies or certificates of insurance in which the number of premiums or assessments ave limited to a fixed period of years, and it issues paid-up endowment certificates payable to a member when he arrives at a certain age, and such payment is made to such beneficiary member whether or not he be temporarily or permanently disabledj either as the result of disease, accident or old age.
Fourth. Because by the by-laws of plaintiff association it is provided that the liability of its members for the payment of any one death claim is limited to one assessment upon each member, and which said assessment is limited to a certain amount specfied in the
Fifth. Because by virtue of its corporate authority under and according to the laws of the State of Colorado, to which it owes its parentage, no authority is vested in plaintiff to issue limited payment or paid-up certificates of insurance, and no authority to issue certificates of insurance whereby any person shall be made a beneficiary except the widows, orphans, heirs and devisees of deceased members, and having no authority to issue said certificates of insurance by virtue of its corporate capacity under the laws of the State in which it was incorporated, it could have no authority to issue such certificates in this State.
Sixth. Because plaintiff is not a fraternal association with a representative form of government.
Seventh. Because plaintiff issues certificates of insurance payable to relatives of members as beneficiaries without regard to their being “blood relatives,” as required by act of 1897.
On the-day of-,1898, the relator filed before Division number two of the Supreme Court of the State of Missouri an application for a writ of mandamus against the Superintendent of the Insurance Department, asking that he be required to issue a certificate of authority authorizing the said Fraternal Union of America to do and transact its business in the State of Missouri under and by virtue of the provisions of the act of the Legislature of the State of Missouri, approved March 16, 1897, entitled “Fraternal Beneficiary Associations.”
Sections 1, 2, 3 and 6 are as follows:
"Section 1. A fraternal beneficiary association is hereby declared to be a corporation, society or voluntary association, formed or organized and carried on for the
“Sec. 2. All such associations coming within the description as set forth in section 1 of this act, organized under the laws of this or any other State, province or territory, and now doing business in this State, may continue such business, provided that they hereafter comply with the provisions of this act regulating annual reports and the designation of the Superintendent of the Insurance Department as the person upon whom process may be served, as hereinafter provided.
“Sec. 6. The Superintendent of the Insurance Department of this State shall, upon the application of any association having the right to do business within this State, as provided by this act, issue to such association a permit, in writing, authorizing such association to do business within this State, for which certificate
Sections 77 and 81, of the constitution of the relator, are as follows:
“Sec. 77. Every member shall, when he takes the degree of fraternity, and receives his benefit certificate, pay to the secretary of his lodge, in addition to one-month’s per capita tax, local lodge dues, one assessment according to his age when applying for membership as per the following rates, which shall determine the rate to be fixed in said certificate, by the supreme secretary.......$3,600 certificates will not be issued until after January 1, 1889, and then only at the discretion of the advisory board. The rate of assessment of each member shall be fixed at his nearest birthday, except as provided in section 78.
“Sec. 81. A member who shall live out his expectancy of life at the time of the issuance of his certificate, at the expiration of said expectancy (the date of which expiration shall be stated in the certificate), shall be paid one half of the face of his certificate in cash, less the amounts on account of accident or total disability claims previously paid him, the same to be paid out of the maturity fund, and for the balance of the certificate (50 per cent, or less should the benefits paid him for accident and disability benefits exceed fifty per cent on the face of his certificate) there shall be issued a paid-up certificate payable on the death of the member; provided that no such payment shall be made to said member until he shall have attained the-age of seventy years, and if he shall have lived out his expectancy of life before he has reached seventy years of age said Supreme Lodge shall issue to him a paid-up certificate providing for the payment to him at the time he shall reach the age of seventy years as per terms
It is argued by respondent that no provision for the payment of benefits of insurance can be made except in case of death, sickness, temporary or permanent physical disability, either as the result of disease, accident or old age; and that the payment of death benefits can only be made to the families, heirs, blood relatives, affianced husband or affianced wife of, or to persons dependent upon the member, and no person other than those belonging to that class shall or can rightfully be designated as beneficaries in the certificate of insurance tobe paid upon the death of the member.
Upon the other hand it is contended by relator that as the statute of Missouri does not forbid the issuing of certificates in the manner authorized by sections 77 and 81, of its constitution, that the authority to do so must be implied.
The statute provides that such fraternal beneficiary associations “shall make provision for the payment of benefits in case of death,” and “may make provision for the payment of benefits in case of sickness, temporary or permanent physical disability, 'either as a result of disease, accident or old age,” but it is not to be presumed therefrom even if such presumption could be indulged under any circumstances, that the purpose of this statute was to fix seventy years as the age when physical disability from old age alone would be presumed. While the act should be given the meaning intended for it by the legislature, it would require a strained construction to justify a
In the case at bar the relator under its constitution has the power to issue life certificates payable at the age of seventy of the holder of such certificate and being payable on the expiration of a fixed period is clearly endowment insurance, and not within the provisions of the act of 1897.
From what has been said it logically follows that the association has no right to have the certificate to do such business as it claims, and that it was rightfully refused by the respondent. There are other questions raised by council for the respective parties in their briefs, but the conclusion reached renders it unnecessary to pass upon them. The writ must be denied.