State ex rel. Attorney Gen. v. Farmers', etc., Ins. Co.

• Decision Date: 21 October 1885
• Parties: STATE EX REL. ATTORNEY GENERAL v. FARMERS', ETC., INS. CO.
• Court: Nebraska Supreme Court

18 Neb. 276

25 N.W. 81

STATE EX REL. ATTORNEY GENERAL

v.FARMERS', ETC., INS. CO.

Supreme Court of Nebraska.

Filed October 21, 1885.

Quo warranto.

William Leese and N. K. Griggs, for plaintiff.

Harwood, Ames & Kelly, for defendants.

REESE, J.

This is an original proceeding instituted for the purpose of ousting defendants from transacting the business of life insurance. The information alleges in substance that defendant association is now, and has been for some time, transacting the business of life insurance within the state, and issuing policies or certificates of insurance upon the lives of persons within the state; that it has not complied with the laws of the state relating to the transaction of the business of life insurance, and has not at any time obtained a certificate from the auditor of state permitting it to transact such business, and that it has no authority of law to engage therein; that defendants McBride, Gillispie, Hoagland, Currie, Fletcher, and Tamblin are the officers of said association, and as such are soliciting risks and effecting contracts of insurance in its behalf. Exhibits are attached showing the form of “application for membership,” “certificate of membership,” “security notes,” “receipt for membership fee,” circulars, etc., in use by defendants for the purpose of effecting the issuance of indemnity or insurance upon the lives of persons. The answer consists alone of the denial “that the defendant the Farmers' & Mechanics' Mutual Benevolent Association has not complied with the laws of the state of Nebraska relating to the transaction of the business of life insurance within said state.” Upon the argument it was conceded by defendants that no certificate or permission of the auditor had been issued to them as is required by law to be issued to insurance companies, but it was contended that no such certificate was necessary; that defendant association is not an insurance company in contemplation of law, and therefore is not within the restrictions and prohibitions of the act of 1873, (chapter 43, Comp. St.)

The certificate of membership, omitting the name of the assured, is as follows:

“Farmers' & Mechanics' Mutual Benevolent Association. Incorporated under laws of Nebraska, October 13, 1884, Lincoln, Nebraska. This certificate of membership witnesseth and declares:

That in consideration of the representations and agreements made in the application for this certificate of membership, and bearing even date herewith, which is made a part of this contract, the payment of an admission fee of not exceeding ten dollars, the payment of one dollar and seventy-five cents on or before the tenth day of May, 1885, and the same amount semiannually thereafter, and the payment on or before maturity of such benefit assessments as may be legally levied by the board of directors, the Farmers' & Mechanics' Mutual Benevolent Association issues this certificate of membership, and constitutes ______, of ______, county of ______, state of Nebraska, a member of said association, with all the rights and privileges thereof, subject to the following conditions and agreements, and the provisions of the by-laws of said association.

DEATH BENEFITS.

Upon the receipt at the office of the association, in Lincoln, Nebraska, of satisfactory proofs of the death of said member, he having conformed to all the conditions of membership, this association will pay to ______, or the legal heirs of said member, the net proceeds of one full assessment at schedule rates upon all contributing members at date of such assessment, and which is received at the Lincoln office within thirty days from the date of the notice thereof, to an amount not exceeding five thousand dollars, to be paid within thirty days thereafter at the office of the association at Lincoln, Nebraska.

PERSONAL BENEFIT.

And this association further agrees that whenever this certificate shall have been maintained in full force by the prompt payment by the said member, on or before maturity, of all dues and assessments for the period of ten full consecutive years, this certificate may then mature, in which case this association will then pay to the said member personally the net proceeds of a half assessment at schedule rates upon all contributing members at that date, and which is received at the Lincoln office within thirty days from date of the notice of assessment thereof, not exceeding two thousand dollars: provided, that upon payment of said amount this certificate shall be canceled and surrendered to this association, and provided, further, if the said member shall allow his certificate to lapse from any cause whatever, that the time of estimating when said ten years shall commence to run shall date from the date of his restoration to membership, and not from the original date of certificate: provided, the members shall not be assessed for this benefit, nor be entitled to the same, unless he has especially made application for this benefit when applying for membership.

ACCIDENT BENEFIT. CLASS THREE.

It is further stipulated that in case the member above has been in good standing in this association for a period of six full consecutive months, and becomes disabled by accident, not contracted in an immoral way, so...