Burton v. School Dist. No. 19

Blume, Justice.

In this case, the defendant school district undertook to insure its buildings with the defendant fire insurance companies, which were mutual companies. It agreed to pay an annual cash premium of $48.50, for a policy of $5000, and assumed a contingent liability of an assessment for an equal and additional amount, the policy providing, among other things, that:

“The contingent mutual liability of each member of this company for the payment of losses and expenses not provided for by the cash fund shall be a sum equal to and in addition to the amount of one annual premium.”

The sole…