PRIVY COUNCIL APPEAL.

Taranaki Daily News, Volume LVI, Issue 253, 24 March 1914, Page 3

PRIVY COUNCIL APPEAL.

NEW ZEALANDER'S INSURANCE POLICY. London, Miirch 10. Tlie Privy Council lias dismissed with costs the "appeal ease, Equitable Life Company of the United States v. ficed, of New Zealand. Mrs. Reed (wife of Dr. J. L. Reed, of Waipawa) had taken out a policy with the Equitable Society for the sum of £IOOO, payable at death or at the end of 25 years. Payments of premiums ceased after some five year, and then, after a certain lapse of time, Mrs. Reed made application for the surrender value of 3the policy (meaning an amount to ! which she'was entitled). The society contendS! that they had applied the surrender value, from time to time, to keep up the payment of premiums. An agreement could not be reached between tlie parties, and eventually a case was stated for the Supreme Court, and afterwards removed into the Court of Appeal, where it was twice argued. Several questions were submitted to the Court for answer, the main point being whether the surrender value of a policy had necessarily to he applied to tlie payment of premiums in arrears, or whether, on the insured ceasing to pay premiums, there was to issue automatically a paid-up cndowimient policy for the appropriate amount stated on the policy under the heading "paid-up enIdow'nment granted automatically unless other payment selected?" In October, 1012, the Court of Appeal delivered a majority judgment in favor of Mrs. Reed.