Joseph Rucker Lamar

“ It was for the court of the state where the company was chartered and where the fund was maintained to say what was the character of the members' interest-whether they were entitled to have it distributed in cash, or used in paying the next assessment, or retained as a fund for the prompt settlement of claims, with the right and duty on the part of the company, as their trustee, to replenish the same by collections from succeeding assessments. But it was impossible for the company to bring a suit against 12,000 members living in different parts of the United States. ”

“ On April 4, 1885, the Hartford Life Insurance Company issued to Herman Ibs a certificate of membership in its Safety Fund Department which was conducted on the mutual assessment plan. The certificate provided that if the policy was kept in force, by the payment of all assessments duly levied upon all the members to create a mortuary fund, his wife should be entitled to receive at his death an indemnity of $2,000, payable out of such mortuary fund. ”

“ The bill also alleged that the company had recently decided to discontinue writing insurance on the assessment plan, and was endeavoring to induce members to surrender their certificates and to take out ordinary life policies in the company's stock department. By reason of this change of policy and the consequent decrease in membership in the Safety Fund Department and the increase in assessments the bill alleged that the present certificate holders, who had created the mortuary fund, were entitled to an immediate distribution of the moneys therein. ”

“ For while, under the terms of the contract embodied in the certificate, he may not have had the right to assign the policy, or to change the beneficiary, or to lessen the amount payable at his death, yet, whether treated as an expectancy or as contingent interest, her right to receive an indemnity depended upon her husband being a member at the time of his death, since failure to pay the assessments would work a forfeiture. ”

“ Rep. 926; Mutual L. Ins. Co. v. Harris, 97 U.S. 336, 24 L. ed. 962; Condon v. Mutual Reserve Fund Life Asso. 89 Md. 99, 44 L.R.A. 149, 73 Am. St. Rep. 169, 42 Atl. 944; Maguire v. Mortgage Co. 122 C. C. A. 83, 203 Fed. ”