Page:United States Reports, Volume 209.djvu/361

 209 U./I. Opinion of e Court would have had. Any deduction--any equity--which the original company would have had against the original' insured is to inure to the benefit of the rcinsuring company. "I am of opinion that the Republic is llablc on these policies to the extent of the adjusted losscis, even if the Lorillard had not paid a cent." In Casha{* v. The Northwestern &c. Insurance Co., 5 Biss. 476, in the reinsurance policy there was a clause that the re- insurer shall "pay pro rata at and in the time and manner as the reinsured." It was held that the rcinsurcr was to have all the advantages of the time and nanncr of payment specified in the policy of the reinsured, but that it had no reference to the insolvency of the rcinsured. The court in that case said: "The insolvency of the original insurer is no defense, in whole or in part, to a suit against the reinsurer. It is claimet on the part of the defendant that the condition in its policy is an cxccptinn to this position of the law. . The con- dition in that policy that 'in case of loss the company shall pay pro rata at and in the same time and manner as the re- insured,' cannot mean that in case of the insolvency of the Fulton company the defendant shall only be obliged to pay the pro rata of the dividends of the assets of said company, upon the claim of the first insured. It cannot have.such ap- plication. The condition means that the defendant shall pay at and in the same time and manner as the reinsured company shall pay or be bound to pay according to its policy, and the defendant shall havc all thc advantages of the timc and manner of payment specified in the policy of the Fulton company, otherwise the defendant's policy would not be the contract of indemnity intended, and endless litigation might ensue." Bearing in mind what the contract of reinsurance, pure and simple, means, and how these contracts have been enforced in the past when some special language has been introduced in regard to the payment under a reinsurance policy, the question arises whether, by the use of the language of the eleventh subdivision, the contract of reinsurance, while still

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