Northwestern Mutual Life Ins. Co. v. James, Auditor
| Decision Date | 21 April 1910 |
| Parties | Northwestern Mutual Life Ins Co v. James, Auditor |
| Court | Kentucky Court of Appeals |
Appeal from Franklin Circuit Court.
Judgment for defendant, plaintiff appeals. — Affirmed.
BARNETT & BARNETT, DODD & DODD, TYLER BARNETT and JOHN L. DODD for appellant.
JAS. BREATHITT, attorney general and JOHN F. LOCKETT, assistant attorney general for appellee.
By the act approved March 29, 1902 (Acts 1902, c. 128, art. 11, subd. 2), section 4226, Ky. St., was made to read as follows: "Every life insurance company other than fraternal assessment life insurance companies not organized under the laws of this state, but doing business therein, shall on the first day of July in each year, or within thirty days thereafter, return to the Auditor of Public Accounts for deposit in the insurance department a statement under oath, of all premiums receipted for on the face of the policy for original insurance and all renewal premiums received in cash or otherwise, in this state, or out of this state, on business done in this state during the year ending the thirtieth day of June last preceding or since the last returns were made, and shall at the same time pay into the state treasury a tax of two dollars upon each one hundred dollars of said premiums as ascertained."
In Mutual Benefit Life Insurance Co. v. Commonwealth, 128 Ky. 174, 107 S. W. 802, 33 Ky. Law Rep. 338, it was held by this court that under this act the tax of $2 was to be collected on each $100 of premiums in fact collected, but not on the amount of the dividends allowed by the company and deducted from the gross amount of the premiums specified in the policies. The insurance commissioner gave the statute the other construction holding that the tax of $2 should be paid on the gross amount of the premiums without any regard to the credit of dividends, and this construction was followed in the circuit court. After the controversy had arisen as to the proper construction of the act of 1902, and while the case was pending in this court, and before its decision, the General Assembly met, and, at the instance of the insurance commissioner, amended the statute so as to make it read as follows: "Every life insurance company other than fraternal assessment life insurance companies, not organized under the laws of this state, but doing business therein, shall on the first day of January in each year, or within thirty days thereafter, return to the Auditor of Public Accounts, for deposit in the insurance department a statement under oath of all premiums receipted for on the face of the policy for original insurance and all renewal premiums received in cash or otherwise in this state, or out of this state, on business done in this state, during the year ending the 31st day of December, and no deductions shall be made for dividends, or since the last returns were made, on all premium receipts which shall include single premiums, annuity premiums, and premiums received for renewal, revival or reinstatement of policies, annual and periodical premiums, dividends applied for premiums and additions, and all other premium payments received during the preceding year on all policies which have...
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