Northwestern Mutual Life Insurance v. State
Wisconsin Supreme Court
Appeal from an order, of the circuit court for Dane county: E. Ray Stevens, Circuit Judge. Action to recover the sum of $21,643.07, being the amount of license fees paid under protest by plaintiff on $721,435.77 due in 1919 from its policy-holders but not paid to it in cash otherwise than by annually adding the amount due for interest to the principal of the policy loan.
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Appeal from an order, of the circuit court for Dane county: E. Ray Stevens, Circuit Judge. Action to recover the sum of $21,643.07, being the amount of license fees paid under protest by plaintiff on $721,435.77 due in 1919 from its policy-holders but not paid to it in cash otherwise than by annually adding the amount due for interest to the principal of the policy loan. The allegations of the complaint are summarized by counsel for plaintiff as follows: “Plaintiff’s only sources of revenue always have been and now are (a) premiums paid in cash by member policyholders, and (b) interest or…
1Opinion of the CourtVinje, J.
The gist of the argument of counsel for plaintiff is that since, when interest on a policy loan is unpaid, nothing comes in to the company by way of money or its equivalent, there is neither gain nor loss by the transaction. That when the policy loan with accrued interest equals the reserve they cancel each other, leaving net assets as before. This argument is repeated in varying forms. Thus:
“By the terms of the policy and the loan agreement, whenever the loan with unpaid interest thereon equals the then reserve, both policy and loan are canceled. When, that happens the reserve disappears…
2Cited by12 opinions
- Tooley v. O'CONNELLWisconsin Supreme Court · 1977
- Bogust v. IversonWisconsin Supreme Court · 1960
- Miller v. Welworth TheatresWisconsin Supreme Court · 1956
- Szep v. RobinsonWisconsin Supreme Court · 1963
- Sipple v. ZimmermanWisconsin Supreme Court · 1968
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