610 HONVAM) V. SOVEREIGN CAMP W. 0. W. [190 HOW ARD• V. SOVEREIGN CAMP OF WOODMEN OF THE • WORLD. 4-3778
OpiniOn delivOred March 18, 1935. iNSURAHCE—RIGHT TO CASH SURRENDER VALUE.—Insured's right to ihe cash surrender * value of a benefit certificate became vested when • a letter containing a demand therefor * waA mailed by him, and such right could not . be impaired by insurer's subsequent action . in changing its constitution and by-laws nor by the State of .in-. surer's origin subsequently, declaring a moratorium. ApPeal from Union Circuit Court, Second Division ; W. A. Speer, Judge; reversed: - Homer T. Rogers and Compere & Compae, for appellant. Mahony & Yocum, for appellee. HUMPHREYS, J. • This suit -Was instituted by appellant against appellee, .a fraternal beneficiary 'assOciation, in - the Union County Circuit Court to recover the cash surrender value of policy No. RW-1004950-L.' He paid premiums on the policy tor thirty-sii years or up to and including February . 28, 1933. On March 25, 1933, he wrote a letter to appellee applying for the payment of the -cash surrender value on his certificate, which was not answered by appellee . at the him it received the letter. It claimed later that it did not recOive the letter until March 30,. 1933, and that on that day the State of Ne-braska . declared a moritorium suspending temporarily
ARK.] HOWARD V. SOVEREIGN CAME W. 0.. W. 611 the payment of the . cash surrender. values of policies of insurance companies doing business in that State. This moritorium was lifted on the 9th day of September, 1933, before the instant suit wa.s tried. Appellant, at its meeting in July, 1933, in Chicago, amended its constitution and bylaws, susPending the 'Payment ot Cash surrender values of its • outstanding policies. until September 1, 1935. The policy or certificate of appellant contained a provision that his rights as a member :should be determined by the constitution and bylaws at . "the tinie he joined and as thereafter adopted:, . On a hearing of the cause, the trial conrt.abated . the suit and dismtssed appellant's complaint without -prejudice, from which is this appeal.' . The-main question arising on this appeal is when appellant'S right to dethand the cash surrender valne of his poliCy .accrned. It accrued on the date of his letter, March 25, 1933. The date of its reception; or the date it should have been, received in due course of -the . mails, related back to the date the letter was mailed. It.became a demand for the cash surrender Value of his Policy . on the date it was stamped, properly directed and mailed. On that date his right to the cash surrender value of his certificate became a fixed and.vested right. This vested or contractual right could 'not be impaired by any subsequent change in appellee's constitution. or bylaws.- The reservation in the. certificate Or policy to Make such , ,changes Could only - apply to 'Certificates or policies . urider i which veSted rights had not accrued: • On account of the error indicated, the judgment is reversed, and the cauSe is rernanded with . directions to the Arial court to render judginent in favor .of appellant against appellee for the 'ainount of the Cash surrender value o.f the . polie' y 'on ' Mara 25 1933 together With interest theredn. -•
You are being directed to the most recent version of the statute which may not be the version considered at the time of the judgment.