15 B.T.A. 635 | B.T.A. | 1929
Lead Opinion
The petitioner contends that since the amounts received by the widow as beneficiary were receivable only by reason of the accident which resulted in the decedent’s death, these amounts were not receivable “ under policies taken out by decedent upon his own life ” and therefore should not be included in the value of his gross estate for estate-tax purposes. Section 302 (g) of the Revenue Act of 1924 provides as follows:
*637 The value of the gross estate of the decedent shall be determined by including the value at the time of his death of all property, real or personal, tangible or intangible, wherever situated — ■
⅜ * * * * * ‡
(g) To the extent of the amount receivable by the executor as insurance under policies taken out by the decedent upon his own life; and to the extent of the excess over $40,000 of the amount receivable by all other beneficiaries as insurance under policies taken out by the decedent upon his own life.
As we understand the executor, the interpretation which he would have us place upon the foregoing provision is that the words “ policies taken out by the decedent upon his own life ” refers to “ life insurance ” in the ordinary meaning of that term, and can not include “ accident insurance ” and insurance receivable under the double indemnity provision of ordinary life policies. With this we can not agree. It is well Recognized that there is a distinction between life insurance and accident insurance, the former insuring against death in any event and the latter (where accidental death policies are involved) against death under certain contingencies, but we fail to see why one is not taken out upon the life of the policyholder as much as the other. In each case the risk assumed by the insurer is the loss of the insured’s life, and the payment of the insurance money is contingent upon the loss of life.
A general statement as to the relationship between life and accident insurance is found in 1 Corpus Juris 404, as follows:
It has been considered that accident insurance is akin to life insurance; and essentially the same principles underlie, and the same rules govern both kinds of insurance, and indeed, where an accident policy, in addition to the usual provision for indemnity against loss by reason of bodily injury by accidental causes, stipulates for the payment of a certain sum to a person named in case of the death of the insured by accident, it would seem clear that it is, in that aspect, a “ life insurance policy ” or “ policy of insurance on life ” as those terms are used in statutes relating to such policies. * * *
In support of the foregoing statement, Logan v. Fidelity & Casualty Co., 146 Mo. 114; 47 S. W. 948, is cited, wherein the court said:
* * * The calling of a contract of insurance an “ accident,” “ tontine,” or “ regular ” life policy, or, for that matter, by any other appellation that may be adopted for business or conventional uses or classification, cannot make a policy containing an agreement to pay to another a sum of money designated upon the happening of an unknown or contingent event, depending upon the existence of life, less a policy of insurance on life. Insurance on life includes all policies of insurance in which the payment of the insurance money is contingent upon the loss of life. * * *
The argument advanced that, since prior rulings of the Commissioner recognize a distinction between life and casualty insurance,
Reviewed by the Board.
Judgment will be entered for the respondent.