PRIVY COUNCIL APPEAL.

Dominion, Volume 7, Issue 1978, 7 February 1914, Page 6

PRIVY COUNCIL APPEAL.

~ VA.NEW ZEALAND CASE, -. fly Tolesr&Ktt-Presj Association—Ooßiidnht - -London, February 5. Injiho Privy Council appeal case the Equitable Life Assurance Company versus Reed (New Zealand) judgment was reserved. ■ •"'.-'■•

The case concerned an insurance policy, .■which. Mrs. Meed (wife of. Dr. /. i,. Zteed, '6f • Waipawa) had taken out with the : Equitable: Society for the sum of -fiIOOO, payable at ! death or at the end of ,25 year 3. Payment, of : premiums ceased after some five years, and then, after a certain.' lapse of time, Mrs; Reed made application, for the surrender value of the ■policy (naming an amount to which she she'was entitled). The society contended that they .'had applied the surkrender'value, from time to time, to keep pip.the payment of premiums., An agree'ment could not be reached between the (parties, and eventually a case wns stated (for the. Supreme Court, and afterwards a-amoved into the Court of Appeal, where it was twice argued. Several questions iwere suTjmitted to the 1 Court for answer, •the main .point being whether the.surrender value'of a policy; had'necessarily to •jbe applied, to the. payment of premiums ,dn aTreaTS, or whether, on'the; insured jceasing to pay" premiums, there was to assuo automatically a paid-up endowment ipolicy for the appropriate amount stated 'on the policy under the heading "paidnip endowment granted automatically; unless other ; payment selected?" In Octojber, 1912,-the Court of Appeal delivered ti majority, judgment,in favour, of .Mrs. *Eeed,