State v. Schwarzschild

• Decision Date: 06 April 1891
• Citation: 83 Me. 261,22 A. 164
• Parties: STATE v. SCHWARZSCHILD.
• Court: Maine Supreme Court

22 A. 164

83 Me. 261

STATE

v. SCHWARZSCHILD.

Supreme Judicial Court of Maine.

April 6, 1891.

(Official.)

Exceptions from superior court. Cumberland county.

This case was presented upon exceptions to the overruling of respondent's general demurrer to an indictment in two counts, drawn under so much of section 1, c. 281, Pub. Laws 1889, as reads as follows: "Nor shall any such company or agent pay or allow, or offer to pay or allow, as inducement to insurance, any rebate of premiums payable on the policy or other benefits to accrue thereon." Pub. Laws 1889, c. 281, reads as follows: "Section 1. No life insurance company doing business in this state shall make or permit any distinction or discrimination in favor of individuals between insurants of the same class and equal expectation of life, in the amount of payment of premiums, or rates charged for policies of life or endowment insurance, or in the dividends or other benefits payable thereon, or in any other of the terms and conditions of the contract it makes; nor shall any such company or any agent thereof make any contract of insurance or agreement as to such contract, other than as plainly expressed in the policy issued thereon; nor shall any such company or agent pay, or allow or offer to pay, or allow as inducement to insurance, any rebate of premiums payable on the policy or other benefits to accrue thereon, on any valuable consideration or inducement whatever, not specified in the policy contract of insurance.

"Sec. 2. Any company, orofficeror agent thereof, violating any of the provisions of this act, shall be punished by a fine of not more than five hundred dollars for each offense; and the insurance commissioner may revoke the license of any agent convicted of a violation of the provisions of that act."

Frank W. Robinson, Co. Atty., for the State.

N. & EL. B. Cleaves, for defendant.

HASKELL, J. The true construction of the act of 1889, c. 281, is to require life insurance companies to give equal terms to those persons whom it insures that are of the same class, and to stipulate the terms of the insurance in their policies, and to accord to none any other.

The indictment charges that the defendant did allow to an assured a rebate of premiums payable on his policy, but fails to allege that such rebate was not stipulated in the policy. If it was, then no offense under the statute has been committed.

Rebate, says Webster, is "to abate or deduct from; to make a discount from for prompt...