NEW ZEALAND APPEAL.

New Zealand Herald, Volume LI, Issue 15563, 21 March 1914, Page 7

NEW ZEALAND APPEAL.

PRIVY COUNCIL'S DECISION. EQUITABLE LIFE v. REED. By Telegnph—Press Association Copyright (Received March 20, 6 p.m.) London, March 20. The Privy Council has dismissed with costs the appeal in the case of the Equitable Life, of the United States, v. Reed. INSURANCE POLICY DISPUTE. The above case concerned an insurance policy which Mrs. Reed (wife of Dr. J. L. Reed, of Waipawa), had taken out with the, Equitable Society for the sum of £1000, payable at death or at the end of 25 years. Payment of the premiums ceased after some five years, and then, after a certain lapse of time, Mrs. Reed made application to surrender the value of the policy, naming an amount to which she contended she was entitled. The society contended that they had applied the surrender value from time to time to keep up the payment of the premiums. An agreement could not be reached between the 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 be applied to the payment of the premiums in arrears, or whether, on the insured ceasing to pay the premiums, there was to issue automatically a paid-up endowment policy for the appropriate amount stated on the policy under the heading " paid-up endowment granted automatically unless other payment selected." In October, 1912, the Court of Appeal delivered a majority judgment in favour of Mrs. Reed.