Pacific Mutual Life Insurance v. Pacific Surety Co.

The plaintiff Pacific Mutual Life Insurance Company brought this action to recover from the defendant Pacific Surety Company the sum of $4,992.58, claimed to be due under a contract of reinsurance. A general demurrer to the amended complaint was sustained without leave to amend, and from the judgment entered therein plaintiff appealed and said judgment was reversed. (Pacific Mutual Life Ins. Co. v. Pacific Surety Co., 182 Cal. 555 [ 189 Pac. 273 ].). Thereafter defendant answered and the cause proceeded to trial before the court sitting with a jury. A judgment of nonsuit was entered and plaintiff has again appealed.

The nature of the contract of reinsurance was "explained upon the former appeal as follows: “Plaintiff and defendant entered into a contract of reinsurance whereby defendant reinsured the ‘second excess’ of $5,000 of accident insurance policies written by the plaintiff where the principal sum exceeded $10,000: In other words, if the plaintiff issued one or more policies to one person and the total insurance exclusive of accumulations amounted to $20,000 or over, plaintiff carried the first $10,000 of the risk, another reinsuring company carried the risk for the next…