Carr v. Hamilton - 129 U.S. 252 (1889)
U.S. Supreme Court
Carr v. Hamilton, 129 U.S. 252 (1889)
Carr v. Hamilton
Argued December 4, 1888
Decided January 28, 1889
129 U.S. 252
When a life insurance company becomes insolvent and goes into liquidation, the amount due on an endowment policy, payable in any event at a fixed time, and sooner if the party dies before that time, should, in settling the company's affairs, be set off against the amount clue on a mortgage debt from the holder of the policy to the company by way of compensation or reconvention.
When a life insurance company becomes insolvent before the time fixed for the termination of an endowment policy, payable to the holder in case of survival until drat time, or to his children in case of his death before it, the contingent interest of each party is fixed by the insolvency, to be determined by the tables ordinarily used for that purpose.
Where a holder of a life policy borrows money of his insurer, it will be presumed prima facie that he does so on the faith of the insurance and in expectation of possibly meeting his own obligation to the company by that of the company to him.
Newcomb v. Almy, 96 N.Y. 308, disapproved.
Bill in equity to foreclose a mortgage. The case is stated in the opinion.