Kentucky Mut. Sec. Fund Co. v. Turner

• Decision Date: 01 November 1892
• Citation: 93 Ky. 461,20 S.W. 386
• Parties: Kentucky Mutual Security Fund Co. et al. v. Turner et al.
• Court: Kentucky Court of Appeals

20 S.W. 386

93 Ky. 461

Kentucky Mutual Security Fund Co. et al. v. Turner et al.

Court of Appeals of Kentucky.

November 1, 1892

Appeal from Louisville chancery court.

"To be officially reported."

Action by Clarence R. Turner and others against the Kentucky Mutual Security Fund Company and others to subject a fund known as the "security fund," belonging to the defendant company, to the payment of their claims. From a judgment in plaintiffs' favor, defendants appeal. Affirmed.

Bennett J.

The representatives of Turner and Logan's representatives having obtained judgments on life policies issued to said deceased by the appellant the Kentucky Mutual Fund Company and the same not having been paid in full by the said company, the said appellees, as their beneficiaries instituted this action to subject a fund known as the "security fund," belonging to the said appellant to the payment of said claim. The provisions of the appellant's charter and by-laws provided for the funds for the benefit of its policy holders as follows: A mortuary fund, a security fund, and an expense fund. The mortuary fund is intended to pay the policies of such deceased members as may be entitled to the same. That fund is created by certain assessments for the payment of the policies of the deceased members; but the power to assess for such purpose is limited to a certain number of assessments upon the surviving members of the class to which the deceased member belonged and, if such assessments were not sufficient to pay the same in full, it could not be paid out of any other fund. The security fund was intended to be created by separate contributions from the members upon joining the appellant, and other sources. The provision germane to the question at issue is as follows: "Said company further agrees that if, at any time after said fund shall have amounted to two hundred and fifty thousand dollars, or after five years after February 4, 1884, if that amount shall not have been attained before that date, it shall fail by reason of insufficient membership, or shall neglect, if justly and legally due, to pay the maximum indemnity by the terms of the certificate issued, and such certificate shall be presented for payment to said trustees by the legal holders thereof, accompanied by satisfactory evidence as hereinafter provided, on its failure to pay after demand upon it, within the time herein stipulated for the limitation of...