be the section most directly governing the receipt of interest by individual institutions, if the Court were to read section 1727(e) as governing receipt of interest by individual institutions, it would still have to conclude that the Plaintiff is entitled to interest for 1971 because the Plaintiff's share was held by the FSLIC through November 30, 1971 and not refunded until December 13, 1971.
III. Plaintiff Is Not Entitled To a Credit On Its Annual Premium Where Whole Risk Has Attached.
Plaintiff was only insured by Defendant for approximately four of the twelve months his premium payment covered yet at any time during the four months the Defendant could have been liable on the whole of the risk. As was noted in Euclid National Bank v. Federal Home Loan Bank Board, 286 F. Supp. 125 (N.D. Ohio, 1966), aff'd 6 Cir., 396 F.2d 950, cert. den., 393 U.S. 846, 89 S. Ct. 130, 21 L. Ed. 2d 116, a case based on substantially identical facts as the case here, where the whole liability of risk has attached there is no right to a refund even if part of the premium is "unearned" unless the insured can show that the insurer treats the risk as divisible. The practices of the defendant in regard to the redistribution of premiums in the event of mergers and consolidations is not sufficiently analogous to the facts of the instant case to constitute evidence of a decision by the defendant insurer here to treat the risk as divisible.
Perhaps recognizing the problem in obtaining a refund of part of the premium in this case, the Plaintiff asks that he just be given a "credit" toward his premium due to the FDIC, his new insurer, claiming that to do otherwise would be to require him to pay the same government twice for insuring one risk. This argument would have a great merit if the two government insurance agencies involved were supported with funds from the general tax revenues; however, each is supported by assessments upon its member institutions and appear to be financially independent of each other. (See, 1948 U.S. Code Cong. & Admin. News, p. 2317, 1961 U.S. Code Cong. & Admin. News, p. 2611, and 12 U.S.C.A. § 1439). Therefore, absent an agreement to the contrary, the Plaintiff is entitled to no credit or refund on his premium payment.
The Plaintiff's Motion for Summary Judgment must be granted in regard to the claim for interest on its pro rata share of the Secondary Reserve for that part of calendar year 1971 that the share was held by Defendant, and the Motion for Summary Judgment must be denied in regard to Plaintiff's claim for credit on the insurance premium paid Defendant in 1971.
© 1992-2004 VersusLaw Inc.