James Clark McReynolds

“ Persons resident in Missouri, who enter there into a contract which is specifically controlled by the laws of that state, cannot, by agreeing that a modification inconsistent with the requirements of the Missouri law shall be deemed to have been made elsewhere, escape the prohibition of the Missouri statute. The fact that one of the parties to the contract is a corporation and hence capable of having a residence also in another state, and that some acts in connection with the contract were done by it there, does not affect the result. ”

“ And, moreover, that it is one of a kind which ordinarily no state by direct action may prohibit a citizen within her borders from making outside of them. It should be noted that the clause in the policy providing 'cash loans can be obtained by the insured on the sole security of this policy on demand, etc.,' certainly imposed no obligation upon the company to make such a loan if the Missouri statute applied and inhibited valid hypothecation of the reserve as security therefor as defendant in error maintains. ”

“ The letter of notification did not constitute a contract made or entered into within the state of Louisiana. It was but the performance of an act rendered necessary by the provisions of the contract already made between the parties outside of the state. It was a mere notification that the contract already in existence would attach to that particular property. In any event, the contract was made in New York, outside of the jurisdiction of Louisiana, even though the policy was not to attach to the particular property until the notification was sent.' 165 U. S. 588, 17 Sup. Ct. 431, 41 L. Ed. ”

“ The net value of the policy, when the premium becomes due, and is not paid, shall be computed * * * and after deducting from three-fourths of such net value, any notes or other evidence of indebtedness to the company, given on account of past premium payments on said policies, issued to the insured, which indebtedness shall be then canceled, the balance shall be taken as a net single premium for temporary insurance for the full amount written in the policy. ”

“ The means adopted was to prescribe the limits within which the parties might agree to dispose of the net value of the policy otherwise than by commutation into extended insurance; a means commonly adopted in non-forfeiture laws, only the specific limitation in question being unusual. The insurance policy sought to be protected was a contract made within the state between a citizen of the state and a foreign corporation also resident or present there. ”

“ The application for the policy addressed to the company at its home office was likewise delivered at the Missouri Clearing House and forwarded to the home office. The application was considered and accepted in New York. The policy was executed there. It provided that the premiums and the insurance should be payable there. But such acts did not prevent the policy being held to be a Missouri contract. Equitable Life Assurance Society v. Clements, supra; Northwestern Life Insurance Co. ”

“ For acts essential to the making of any agreement involving a pledge of the policy were done by Dodge, by the beneficiary, and by the company's agent in Missouri and were subject to the prohibition of a statute of that state which prevented the operation there of inconsistent New York laws. If the laws of Missouri and of New York had left the parties free to contract insurance on such terms as they ple sed, they might with effect have elected to be bound by the law of the state of their preference, whatever the place of the contract ”

“ Both defendant in error and her husband, the assured, at all times here material resided in Missouri. Being duly licensed by that state, plaintiff in error, responding to an application signed by Josiah B. Dodge at St. Louis, issued and delivered to him there a five thousand dollar twenty-year endowment policy upon his life, dated October 20, 1900, naming his wife beneficiary but reserving the right to designate another. ”

“ The court below rested its judgment denying full effect to the loan agreement upon Smith v. Mut. Ben. Life Ins. Co., supra, and Burridge v. Insurance Co., supra. In them the Supreme Court distinctly held section 7897 controlling and the insurer liable upon policies actually issued in Missouri notwithstanding any subsequent stipulation directing different disposition of reserve after default. ”

“ A Louisiana statute made it a crime for any one to do any act to dffect insurance in any marine insurance company which had not established a place of business within the state and appointed an authorized agent upon whom process might be served. ”

“ Cas. 733; Provident Savings Ass'n v. Kentucky, 239 U.S. 103, 114, 36 Sup. Ct. 34, 60 L. Ed. 167, L. R. A. 1916C, 572; Adams v. Tanner, 244 U.S. 590, 595, 37 Sup. Ct. 662, 61 L. Ed. 1336, L. R. A. 1917F, 1163, Ann. Cas. ”