Artrude L. W. Rhine, Appellant v. New York Life Insurance Company, Respondent

Summary

The New York Court of Appeals affirmed the Appellate Division's judgment, holding that the insurance company's use of the contribution method—including a negative disability factor—to apportion its divisible surplus was permissible and did not violate the equitable apportionment requirements of Insurance Law §§ 83 and 89. The court rejected the plaintiff's claim that the disability benefit provision constituted a separate contract requiring separate surplus distribution.