124 Wis. 169 | Wis. | 1905
Lead Opinion
The facts in this case are undisputed. The plaintiff’s husband, James B. Canterbury, procured from the defendant three policies of insurance on his own life— one for $2,000, dated December 5, 1874; another for $2,000, dated June 1G, 1876; and another for $3,000, dated September 24, 1878 — and it was stated in each of said policies, in effect, that it was “for the benefit” of “his wife,” the plaintiff in this action, for the amount stated therein, for the term of his natural life, and this defendant therein promised and agreed “to pay the said sum assured, at its office, to the said beneficiary, or her executors, administrators, or assigns, in sixty days after due notice and proof of death of the said person whose life” was thereby assured. As indicated in the foregoing statement, the said James B. and Catherine A. Canterbury, on October 1, 1892, for a valuable consideration, sold, assigned, transferred, and set over unto the State Bank of La Crosse all their right, title, and interest in and to both of said policies dated, respectively, June 16, 1876, and September 24, 1878, and delivered the same to the bank. Such assignment was in writing and in duplicate, and such duplicate was at the time sent to the defendant’s home office, and has remained there ever since, and said bank thereupon and repeatedly thereafter paid the premiums upon said policies, respectively, as they became due, to protect its interest therein. On July 31, 1896, James B. and Catherine A. Can-terbwry, for a yaluable consideration, sold, assigned, transferred, and set over unto the National Bank of La Crosse all their right, title, and interest in and to- said policy of December 5, 1874, and delivered the same to that bank. Such as
It is conceded that all three policies were in full force at tke time of tke death of James B. Canterbury, February 14, 1901; that February 26, 1901, tke respective banks holding suck policies by suck assignments furnished to tke defendant due notice and proofs of death of James B. Canterbury, and therein and thereby expressly claimed, as suck assignees, tke entire proceeds of tke policy or policies so held by it’; and at tke same time furnished to the defendant due proof of suck banks’ insurable interest in tke life of James B. Canterbury; that March 1C, 1901, this defendant paid to suck banks, respectively, as suck assignees, under tke proofs so furnished, the full amounts called for by tke respective policies, and the defendant then received from each of suck banks its receipt in full therefor, together with tke surrender and delivery of suck policies to this defendant. Tke plaintiff never objected to nor questioned tke validity of either of suck assignments or tke claims of tke respective banks thereunder, or suck payments to tke banks, respectively, until nearly three years after’ suck payments were made. This action was not commenced until January 31, 1904.
Tke questions presented concern tke validity of suck assignments and tke effect of tke payments made by tke defendant to tke respective banks on account of tke policies and assignments mentioned. The wording of suck contracts of insurance is certainly very plain and unambiguous. Tke controversy is as to tke construction of tke statutes' under which they were made, or which have ’since been enacted.
1. Tke first question naturally calling for consideration is as to tke meaning and effect of tke statutes under which these insurance contracts were made. Tke difficulty in con
“That any policy of insurance made by any insurance company on the life of any person, expressed to be for the benefit of a married woman, whether the same be effected by such married woman or by her husband or by any other person on her behalf, shall inure to her sole and sepárale use and bene;fit and that of her children, if any, independently of her hus*179 band and of bis creditors and representatives, and also independently of any other person effecting the same in ber behalf, -bis creditors and representatives.”
That is copied almost literally from ch. 82 of the Acts of Massachusetts of 1844, having the same title; the only difference being in the use of the words “such married woman,” instead of the word “herself,” and inserting the words “sole and” between the words “her” and “separate use.” That was followed by a clause not taken from the Massachusetts statute, to the effect that, “in case of the death of the husband” so insured, “such policy and the benefit thereof” should “belong to such married woman,” and should “be for her sole use and behoof and that of her children.” That statute was continued in force by sec. 5, ch. 95, R. S. 1858, and sec. 5, ch. 95, Tay. Stats. 1871. Ch. 182, Laws of 1862, was an independent act without any repealing clause, and was entitled “An act to secure to married women and others the benefit of insurance on lives,” and the first section declared, among other things, that:
“It shall be lawful for any married woman to cause to be insured for her sole use, the life of her husband, her son, or any other person, for any definite period or for the time of the natural life of such husband, son or other persons [person] ; and in case of her insuring such husband, son or other person, the sum or net amount of the insurance becoming due and payable by the terms of the insurance shall be payable to and for the sole use of such married woman, free and exempt from the claims of the representatives of such husband, son or other person, or of their or any of their creditors, respectively.”
The balance of the act has no bearing upon the question here being considered. The object of the act was to authorize a married woman to procure insurance on “the life of her husband, her son, or any other person,” and to exempt the same from the claims of creditors of such husband, son, or other person. That act was patterned after ch. 80, Laws of New
“It shall be lawful for any married woman, by herself and in her own name, or in the name of any third person, with, his assent as her trustee, to cause to be insured for her sole use, the life of her husband, son or other person for any definite period or for the term of the natural life of such person.”
That is quite similar to the first portion of sec. 1, ch. 182,. Laws of 1862, above quoted, and the statute of New York mentioned. Then follows a clause authorizing “any person” procuring insurance upon the life of another
“to assign, transfer or cause the same to be made payable to any married woman, . . . whether the person effecting or procuring such insurance or making such assignment or transfer be the husband of such married woman or not, and such policy of insurance, vdien expressed to be for the benefit of, or assigned, transferred or made payable to, any married woman, shall inure lo her separate use and benefit and that of her children, and in case of her surviving such period or-term, the sum- or net amount of the insurance becoming duo and payable by the terms of the insurance shall be payable to-her, to and for her own use and benefit, free from the claims of her husband, his representatives or creditors, and free from the claims of the person effecting, assigning or transferring-such insurance, his representatives or creditors.”
These provisions are quite similar to sec. 5, ch. 95, R. S., 1858, and Tay. Stats. 1871, taken in part as they were from the statutes of Massachusetts. The exemption features of the statutes have not been fully pointed out because there is no
Such are the provisions of the statutes more or less applicable to the case at bar, and which were in force when the policies in question were issued. These policies were all issued prior to November 1, 1878, when the Revised Statutes of that year went into effect. That revision made no substantial change in the statutes in force during the time such policies were issued. On the contrary such revision “condensed” and simplified sec. 19, ch. 59, Laws of 1870, and secs. 5 and 6, eh. 95, R. S. 1858, and Tay. Stats. 1871. Revisers’ Notes, sec. 2347, R. S. 1878. Leaving out nonessentials — so far as the present case is concerned — and the new section reads as follows:
“Any married woman may, in her own name, . . . cause to be insured, for her sole use, the life of her husband, son or other person; . . . and any person, whether her husband or not, effecting any insurance of the life of another, may cause the same to be made payable or assign the policy to a married woman; . . . and every such policy, when expressed to be for the benefit of, or assigned or made payable to any married woman, . . . shall inure to her separate use and benefit and that of her children, and in case of her surviving the period or term of such policy, the amount of the insurance shall be payable to her or her trastee for her own use and benefit, free from the claims of her husband and of the person effecting or assigning such insurance, and from the claims of their respective representatives and creditors. . . . The amount of any such insurance may be made payable, in case of the death of such married woman before the period .at which it becomes due, to her children or to their guardian for their use, if under age, or to any other person, as shall be provided in the policy. . . . The provisions of this section shall apply to all insurance on lives effected before the passage of these statutes.” Sec. 2347, R. S. 1878.
It is claimed that under the portion of our statute taken from New York and the prior decisions in that state the policies in question were not assignable. It will be observed that
“We are not called upon to vindicate tbe doctrine of Eadie v. Slimmon. Tbe inference of a legislative intent to make a policy procured by a wife on tbe husband’s life unassignable, deduced by the court in that case, has sometimes been thought to rest on a slender foundation; but tbe case has been repeatedly followed. [Citing cases.] Tbe legislature, in conferring by subsequent acts a limited power of assignment,' have recognized tbe policy attributed to tbe legislation of 1840.” Brummer v. Cohn, 86 N. Y. 11, 17.
In a later case in that state, speaking of Eadie v. Slimmon, it was said that:
“In that case and in all tbe cases following it tbe policy was either procured by tbe husband upon bis life, and payable to tbe wife, or taken out by tbe wife and payable to herself. [Citing cases.] Since tbe inference of a legislative intent to make nonassignable a policy of insurance upon tbe life of a husband for tbe use or benefit of a wife, issuéd prior to tbe passage of tbe act of 1819, rests wholly upon judicial construction, and not upon tbe express terms of the statute of 1840, it should not, at this late day, be further extended by construction.” Dannhauser v. Wallenstein, 169 N. Y. 199, 211, 212, 62 N. E. 160.
In a still later ease in tbe same court it was held that:
“Money due upon a matured insurance policy, written by an ordinary life insurance company upon tbe life of a bus-band, payable to bis wife, is subject to levy under a warrant of attachment issued against tbe property of tbe wife in an action brought to recover a debt owing by her.” Amberg v. Manhattan L. Ins. Co. 171 N. Y. 314, 316, 317, 63 N. E. 1111.
It was there said that:
“While we have held that such a policy cannot be seized by tbe creditors either of tbe husband or the wife before it has become due and payable, we have not held that it is exempt from tbe claims of her creditors after tbe contingent promise has ripened into an actual promise and tbe right of tbe bene*184 ficiary bas become absolute. . . . Tbe reason for bolding that tbe policy is practically exempt until it becomes due is that tbe wife could not assign it until it matured, because fit would be against tbe spirit and policy of tbe statute to allow sucb a policy to be assigned by a wife during tbe lifetime of ber bus-band/ or before tbe maturity of tbe policy.”
In view of tbe differences pointed out between tbe New York act of 1840 and our own. statute, and in view of tbe more recent utterances of tbe highest court of that state on tbe subject, tbe decision in Eadie v. Slimmon, 26 N. Y. 9, cannot be regarded as persuasive authority for bolding that under our statutes tbe policies in question were not assignable.
There is no claim here that any court bas ever decided that the statute of Massachusetts made sucb policies nonassignable. On tbe contrary, tbe courts of Massachusetts have declared them to be assignable. Thus, a husband procured two policies of insurance on bis own life “for tbe use of bis wife, Mary D., and bis children alive at bis decease,” and subsequently be and his wife assigned to one S. “all their title and interest in the policies, and all advantages to be derived therefrom,” and thereafter S., at their request, assigned and delivered tbe same to tbe plaintiff, who thereafter paid tbe annual premiums and assessments thereon; each of sucb assignments was made to secure tbe repayment of money borrowed by tbe husband; tbe wife died before tbe husband, and then be died, leaving their child surviving; and it was held that tbe plaintiff, as sucb assignee, could maintain an action at law against tbe company on the policies, which, in tbe language of the act, were “expressed to be for tbe benefit of a married woman.” Burroughs v. State M. L. A. Co. 97 Mass. 359. See, also, Norris v. Mass. M. L. Ins. Co. 131 Mass. 294; Troy v. Sargent, 132 Mass. 408; Boyden v. Mass. M. L. Ins. Co. 153 Mass. 544, 546, 27 N. E. 669. In this last case tbe assignment by tbe wife and children to tbe husband was held valid. In Newcomb v. Mut. L. Ins. Co. 18 Fed. Cas.
Such is tbe import and effect of tbe statute of Massachusetts of 1844 which was adopted in this state almost literally in 1851, and, as indicated, was continued in substantially tbe same form at least down to tbe revision of 1878. Certainly, tbe words “expressed to be for tbe benefit of a married woman,” and tbe words “shall inure to her separate use and benefit and that of her children,” found in tbe Massachusetts act, are also, with tbe words “sole and” inserted before tbe word “separate,” found in tbe Revised Statutes of 1858 and Taylor’s Statutes of 1871. Tbe phraseology is slightly changed in tbe act of 1870, but tbe substance is preserved, as follows:
“Such policy of insurance, when expressed to be for tbe benefit of, or assigned, transferred or made payable to any married woman, shall inure to her separate use and benefit, and that of her children.” • . .
Tbe same provision with tbe word “transferred” dropped out and tbe words “or any such trustee” inserted was con
Tbe first case in tbis court having any bearing upon tbe question bere presented is Kerman v. Howard, 23 Wis. 108. In tbat ease tbe busband procured an insurance on bis own life, payable to bis wife, “Ellen ITill, or ber legal representatives.” Tbe busband bad no child by Ellen, but bad two daughters by a former wife, and tbe plaintiff was tbe daughter of Ellen by a former busband. Tbe busband and wife were both injured by an explosion, from which they both died; the wife a few hours prior to the husband. After the death of the wife, the busband, without knowing tbat she was dead, made bis will, giving tbe insurance to tbe three children “in equal parts,” provided that bis wife did not live, but that, if she did live, then it was to go to ber. Tbis court affirmed tbe judgment of tbe trial court disposing of the'insurance according to tbe will, and held tbat:
“Where a busband survives bis wife, having previously procured a policy of insurance on bis own life for her benefit, and himself paid tbe premiums thereon, be may dispose of it by will or otherwise.”
In that case tbis court commented at some length upon the case of Eadie v. Slimmon, 26 N. Y. 9, and concluded by saying that it could not “be regarded as controlling authority.”
In Archibald v. Mut. L. Ins. Co. 38 Wis. 542, 545, 546, the husband procured from the defendant an insurance on his life of $3,000, payable to his wife. Tbe busband died, and thereupon tbe wife commenced tbe action against tbe company. Tbe company defended on tbe ground tbat the plaintiff was not the owner of the policy; that a short time before the husband’s death he and his wife had, by an instrument in writing, assigned the policy to the persons therein named, to save them harmless from any indorsement and liabilities incurred by them for the assured; and it was said in the opinion, and this court held, that the husband and wife owned the
“The courts of all the states which have passed upon this question, under statutes more or less like ours, excepting the court of appeals of New York, have held that the married woman has the full domain over the policy,1 and may sell,, assign, or pledge it like her other separate property.”
It is there further said that “the decisions in Eadie v. Slimmon, 26 N. Y. 9, and Barry v. Equitable L. A. Soc. 59 N. Y. 587, are placed upon reasoning which does not apply to our statute.” So, in an opinion by Mr. Justice Eield, speaking for the supreme court of the United States, the Archibald Gase is cited to the general proposition that:
“A policy of life insurance without restrictive words is assignable by the assured for a valuable consideration, equally with any other chose in action, where the assignment is not made to cover a mei’e speculative risk and thus evade the law*188 .against wager policies; and payment thereof may be enforced for the benefit of the assignee, and, under tbe system of procedure in many states, in his name.” New York M. L. Ins. Co. v. Armstrong, 117 U. S. 591, 597, 598, 6 Sup. Ct. 877.
Such was the law at the time the policies in question were issued, as declared by this court in the Archibald Case. True, one of those policies had been issued before that decision was announced. But that decision was no new announcement or departure from any established rule of law. On the contrary, the opinion declares the decision to be in accordance with “the settled law of this state.” As already indicated, prior to that decision, and prior to any of the policies in question being issued, this court had expressly repudiated the decision of Eadie v. Slimmon, 26 N. Y. 9, holding “that a policy of insurance on the life of. the husband for the benefit of the wife and children” was not transferable, “so as to divest the interest of the wife,” and held that the husband had power to transfer such policy by will, even after the death of his wife, who had left a daughter her surviving. Kerman v. Howard, 23 Wis. 108. That decision carried the doctrine of assign-ability of such policies much beyond the decision in the Archibald Case, which, as indicated, merely held that the husband and wife together “owned the whole interest in the policy,” and hence could transfer the same by joining in an assignment thereof. So the decision in Kerman v. Howard went beyond the decisions in the Massachusetts cases cited, for the same reason. But the decision in Kerman v. Howard has never been overruled by this court, and has frequently been followed or cited with approval, with an occasional dissent from the writer. Foster v. Gile, 50 Wis. 603, 7 N. W. 555, 8 N. W. 217; Ballou v. Gile, 50 Wis. 614, 7 N. W. 561; Bursinger v. Bank of Watertown, 67 Wis. 75, 81, 30 N. W. 290; Given v. Wis. O. F. M. L. Ins. Co. 71 Wis. 547, 552, 37 N. W. 817; Estate of Breilung, 78 Wis. 33, 35, 46 N. W. 891, 47 N. W. 17; Strike v. This. O. F. M. L. Ins. Co. 95
'2. Tbe question recurs whether such assignability was destroyed or impaired by subsequent legislation. It bas already been shown that tbe statutes on tbe subject in force at tbe times of issuing such policies were substantially tbe same as are found in tbe Revised Statutes of 1878 (sec. 2347). That section was amended in 1889 by striking tbe word “of” out from tbe words “effecting any insurance of tbe life of another,” and inserting in lieu thereof the words “on bis own life or on.” Sec. 1, ch. 271, Laws of 1889. This broadened tbe scope of tbe language, but did not impair, nor attempt to impair, tbe assignability of tbe policy. That section was again amended in 1891 by inserting tbe words included in parentheses contained in tbe following portion of tbe section:
“Every such policy when expressed to be for tbe benefit of' or assigned or made 'payable to any married woman or any such trustee, (shall be the sole and separate property of such married woman, and) shall inure to her separate use and benefit and that of her children, and in case of her surviving tbe period or term of such policy, tbe amount of tbe insurance shall be payable to her or her trustee for her own use and benefit, free from tbe (control, disposition or) claims of her husband and of tbe person effecting or assigning such insurance, and from tbe claims of their respective representatives and creditors.” Sec. 1, ch. 376, Laws of 1891.
Undoubtedly, as indicated in tbe opinion of my brother Marshall, in Ellison v. Straw, 116 Wis. 207, 92 N. W. 1094, tbe purpose of that amendment was to radically change tbe judicial rule announced by this court in Clark v. Durand, 12 Wis. 223, and Kerman v. Howard, 23 Wis. 108, and other cases following those decisions, to tbe effect “that tbe mere
But, as already indicated, there was a clause in the act of 1870 to the effect that, in case such married woman named as beneficiary in such policy should survive the “period or term” therein expressed, “the sum or net amount of the insurance becoming due and payable by the terms of the insurance” should “be payable to her, to and for her own use and benefit, free from the claims of her husband, his representatives or creditors, and free from the claims of the person effecting, assigning or transferring such insurance, his representatives or creditors.” Such was the language of the clause when the policies in question were issued. As indicated, the same was condensed and continued in sec. 2347, R. S. 1878, and, as amended, in the Statutes of 1898, wherein it is declared, in effect, that in case such married woman survived “the period or term of such policy, the amount of the insurance” should “be payable to her or her trustee for her own use and benefit,” etc. The fact that such insurance was to be so paid to her or for her use and benefit,' in case she so survived, but, in case she did not so survive, then to be paid “to her children, or to
Such were the provisions of the statutes applicable when this court held that, as the assured and his wife owned the whole interest in such policy, they could together transfer the same by assignment with the consent of the company. Archibald v. Mut. L. Ins. Co. 38 Wis. 542, 546. The assignments of the policies in question by the plaintiff and her husband were not made until after the amendment of 1891. That amendment in terms applied “to all insurance on lives effected before” its enactment. Assuming it to be applicable to the policies in question, yet it nowhere attempted to take away from such married woman any interest she had in any such policy. On the contrary, it purported to enlarge her right, title, and interest therein by expressly declaring that such policy should be her “sole and separate property,” free from the “control” or “disposition” of her husband or other person procuring the same. The language employed indicates absolute ownership. That amendment placed a married woman, named as beneficiary in such life insui'ance policy, upon an equal footing with a single female or a man, as previously held in other jurisdictions. Thus, in an English case, where a man procured insurance on his own life in the name of his daughter, and retained the policy in his own possession, and paid all the premiums thereon, it was held.to be a complete
The bringing of this action was doubtless induced by what; was recently said by this court in Ellison v. Straw, 116 Wis. 207, 92 N. W. 1094; and if we adhere to all that was said in that case, as distinguished from what was presented and necessarily decided, then it was justified. That case did not involve the voluntary assignment of any policy of insurance, Several of the statutes and decisions bearing upon that question were not there brought to our attention nor considered. The question there presented and decided was whether the interest of a married woman in an insurance policy on her
By the Gourt. — The judgment of the circuit court is reversed, and the cause is remanded with direction to dismiss the action.
Dissenting Opinion
(dissenting in part). I concur in the result reached but not in all the reasons assigned therefor. The policies were issued before the act of 1891 and are governed by the prior law, permitting the assured in such cases to deal with the policy regardless of the beneficiary. The legislature could not change existing contracts. That was not suggested in Ellison v. Straw, 116 Wis. 207, 214, 92 N. W. 1094. It is sufficient for this case, regardless of the beneficiary having joined with her husband in the assignments.
I regret that the decision is not rested on that which we all agree to, instead of covering, unnecessarily, a field where we are so divided that, in view of the addition to our number about to .occur when the case was submitted and the further addition to occur soon, the conclusion reached settles the law only for the one case. I disagree so radically with some features of the opinion and regard the reasoning therein so infirm, as to bearing careful analysis, and the conclusion so contrary to the letter and spirit of our statute and the thought that dominates, as a rule, in taking insurance for the benefit of the family, that it seems best to state at some length the grounds therefor.
We cannot believe that — while, since Clark v. Durand, 12
From the time this court first dealt with the subject under discussion till Ellison v. Straw, supra, though our law had some of the features of the law of Massachusetts, it was held, without exception, that a beneficiary had no right which the assured could not defeat before the maturity of the policy, whereas in Massachusetts a beneficiary, upon the issuance of a policy, became the absolute owner of it with perfect freedom of action in respect thereto. That doctrine which has never before found favor here, though repeatedly presented therefor, has now been adopted, because of the act of 1891, which, to my mind, it seems, was designed to assure to the
The similarity of sec. 2347, Stats. 1898, to the law of Massachusetts supposed to exist, and to which controlling significance is given, we think will be seen to be a mere shadow. But if we were to concede the premise assumed, the reasoning based thereon would fail from the facts, not suggested in the court’s opinion, that the supposed parent statute was not construed before its adoption here, and from the first till now our court has refused to follow the Massachusetts doctrine. It is indorsed now in part only. The suggestion is made that the court would not hold to what would seem to be the effect of the step taken, if the case depended on that, but would adhere to Ellison v. Straw. Thus is established, partly the doctrine of Massachusetts, partly that of New York, and partly that declared here prior to 1891.
It seems to me that one would infer from the court’s reasoning that it has heretofore been quite in harmony with Massachusetts instead of with New York, while prior to Ellison v. Straw it was not in harmony with either, nor with courts elsewhere on the subject under discussion. Ho^ does it profit us on the question of assignability by a married woman of a policy made payable to her, to show that both courts have uniformly held that such a policy is assignable, when the ruling in one has been upon an entirely different ground from that in the other ? One that the consent of the beneficiary is entirely immaterial, the assured being in absolute control, and the other that consent of the assured is immaterial, the beneficiary being in absolute control. Is it not a clear mistake of reasoning to speak of similarity of our statutes to that of Massachusetts when Kerman v. Howard, 23 Wis. 108, was decided, as important, and harmony of our decisions thereafter till Ellison v. Straw, or to class them with Troy v. Sargent, 132 Mass. 408; Gould v. Emerson, 99 Mass. 154, 97 Am.
It seems to be supposed that in Archibald v. Mut. L. Ins. Co. 38 Wis. 542, the court held that the married woman beneficiary could assign her interest; that nothing inconsistent therewith appears in our decisions till Ellison v. Straw; that it has been many times approved elsewhere, and that in Ellison v. Straw that was overlooked. That case was ruled necessarily by the rule of Kerman v. Howard that the assured may dispose of an insurance policy regardless of the wishes of the beneficiary, since the latter’s interest is wholly contingent and under the assured’s control. True, it is said in the opinion “there is nothing in our law which prohibits a married woman from making such an assignment,” referring plainly to her beneficiary interest, which was something or nothing according to the will of her husband. ' It was merely suggested that such right as she had she could assign, since she was emancipated from common-law disabilities and there was no law prohibiting the assignment. We look in vain in the decisions for indorsement of the Massachusetts doctrine. The wife joined with the husband in the assignment. Without her act the effect would have been the same. Kerman v. Howard was followed. That was all. In the opening lines the court said:
“That it is competent for the owner of a life policy to assign the same so that the assignee may maintain an action thereon in his own name, is the settled law of this state, and it is quite immaterial that a married woman is beneficially interested in the policy.”
It is said that the Archibald Gase was never questioned in this court, but has frequently been cited with approval, referring to Ballou v. Gile, 50 Wis. 614, 619, 7 N. W. 561; Bursinger v. Bank of Watertown, 67 Wis. 75, 78, 82, 30 N. W. 290; Estate of Breitung, 78 Wis. 33, 35, 46 N. W. 891, 47 N. W. 17. True, those cases refer to the Archibald Case, but a careful reading of them fails to disclose the remotest suggestion of a reference for any purpose other than to show that the assured may assign his policy without the consent of the beneficiary, and thereby defeat the latter’s interest. In the last case Cole, C. J., stated the question ruled by the Archibald Case thus:
“Can a person who has procured a policy of life insurance on his own life for the benefit of another, and has paid the premiums thereon as they became due, dispose of the insurance money by will to the exclusion of the beneficiary named in the policy, during the lifetime of such beneficiary ?”
We fail to see how that case throws any light whatever on the pi’oposition now at issue.
My brethren further say the Archibald Gase has been cited with approval in various jurisdictions, suggesting such use to support the proposition that a married woman beneficiary may assign the policy. We appreciate that the broad proposition is unnecessary to this case, but the logical effect of my breth
The decisions elsewhere given as supporting the views of the Archibald Oase now taken by my brethren are: (1) Metropolitan L. Ins. Co. v. O’Brien, 92 Mich. 584, 589, 52 N. W. 1012; (2) Amick v. Butler, 111 Ind. 578, 582, 583, 12 N. E. 518; (3) Davis v. Brown, 159 Ind. 644, 647, 65 N. E. 908; (4) Binkley v. Jarvis, 102 Ill. App. 59, 64; (5) Newcomb v. Mut. L. Ins. Co. 18 Fed. Cas. No. 10,147 (p. 47) ; (6) New York M. L. Ins. Co. v. Armstrong, 117 U. S. 591, 597, 598, 6 Sup. Ct. 877. In 1 the Archibald Case is cited solely to the proposition that the assured may assign the policy to secure a creditor. In 2, 3, 4, and 6 it is cited to the proposition that the assured may assign the policy as he may assign any chose in action. In 5 it is cited to the proposition that “this and most courts hold to the doctrine that a married woman who is the beneficiary in an insurance policy has the full dominion over it, and may sell, assign, or pledge it like her other separate property.” In neither 1, 2, 3, 4, nor 6 was the right of the beneficiary involved at all. ¡The use of the case was only legitimate to the point that a policy of life insurance is assignable by the assured. In 5 a manifestly illegitimate use was made of the case, because it was not even remotely hinted by this court that a beneficiary has the dominion over the policy.
Some general statements in the opinion of the court as to the bearing of the Archibald Case with Kerman v. Howard, and the bearing of the two with the Massachusetts cases, to my mind are liable to mislead. It is said that Kerman v. Howard went further than the Archibald Case; that whereas
Further it is said, for tbe same reason Kerman v. Howard goes beyond tbe Archibald Case it goes beyond tbe Massachusetts cases. That suggests that there is some line of consistency between tbe two, when, as we have seen, they are as opposite as tbe poles, one bolding that tbe insured may assign bis policy, conveying tbe whole interest regardless of tbe wife where she is tbe beneficiary, and tbe other that she may assign tbe whole policy regardless of tbe husband.
Tbe legislative purpose in changing tbe law in 1891 can be best seen by viewing tbe conditions then existing with tbe vision unclouded by tbe idea that prior thereto our decisions were to some extent in harmony with those of Massachusetts under a similar statutory condition, and keeping in mind the isolated situation of our court, not only as to. tbe judicial policy of Massachusetts, but courts generally on tbe subject, and tbe radical differences between the statutes of tbe two states which furnish some reason for judicial conflict. It hardly helps to refer to Central Bank v. Hume, 128 U. S. 195, 9 Sup. Ct. 41; Glanz v. Gloeckler, 104 Ill. 573, and like cases bolding that where one takes out a policy of life insurance upon his life for the benefit of another, that other, .as a
Let us look at tbe origin of our statute as it existed in 1891, and point out tbe differences between our original act and that of Massachusetts, which we are told it so much resembles. Ch. 82, Laws of Massachusetts for 1844, tbe so-called “parent law,” is in tbe main as follows:
“SectioN 1. Any policy of insurance made by any insurance company on tbe life of any person, expressed to be for tbe benefit of a married woman, whether tbe same be effected by herself or by her husband, or by any other person on her behalf, shall inure to her separate use and benefit and that of her children, if any, independently of her husband and bis creditors and representatives, and also independently of any other person effecting tbe same in her behalf, bis creditors and representatives, and a trustee or trustees may be appointed by any court authorized to appoint trustees, to bold and manage tbe interest of any married woman in any such policy or the-proceeds thereof.
“Sec. 2. Where a policy of insurance is effected by any person on tbe life of another, expressed therein to be for the benefit of such other, or his representatives, or for that of a third person, the party for whose benefit such policy is made shall be entitled thereto as against the creditors and representatives of the person so effecting the same.”
The law here supposed to have been modeled thereon, ch. 158, Laws of 1851, is as follows:
“Section 1. Any policy of insurance made by any insurance company on the life of any person, expressed to be for*203 tbe benefit of a married woman, wbetber tbe same be effected by sncb manned woman or by ber husband or by any other person on ber behalf, shall inure to ber sole and separate use and benefit and that of ber children if any independently of her husband and of his creditors and representatives, and also independently of any other person effecting the same-in her behalf his creditors and representatives and in case of the death of the husband of such married woman such policy and the benefit thereof shall not go to his executors or administrators but shall belong to such married woman, and shall be for her sole use and behoof and that of heir children.
“Sec. 2. That in case of the death of any married woman for whose benefit and that of her children such policy of insurance was effected it shall and may be lawful for any court having authority to appoint guardians for the minor children of such deceased married woman, which guardian so appointed shall have power to hold and manage the interest of such minor children in any such policy or the proceeds thereof.
“Sec. 3. When a policy- is or has been effected by any person on the life of another, expressed therein to be for the benefit of such other his representative or for that of a third person, the party for whose benefit such policy is made shill be entitled thereto, as against the creditors and representatives of the person so effecting the same.”
A complete key to our law as it stood in 1891 must include ch. 80, Laws of New York for 1840, which is, in the main, as follows:
“It shall be lawful for any married woman, by herself, and in her own name, or in the name of any third person, with his assent, as her trustee, to cause to be insured, for her sole use, the life of her husband for any definite period, or for the term of his natural life; and in case of her surviving, her husband, the sum or net amount of insurance becoming due and payable, by tire terms of the insurance, shall be payable to her, to and for her own use, free from the claims of the representatives of her husband, or any of his creditors; but such exemption shall not apply where the amount of premium annually paid shall exceed three hundred dollars.”
“It shall be lawful for any married woman to cause to be insured for her sole use, the life of her husband, her son, or any other person, for any definite period, or for the time of the natural life of such husband, son or other persons [person] ; and in case of her insuring such husband, son or other 'person, the sum or net amount of the insurance becoming due and payable by the terms of the insurance, shall be payable to, and for the sole use of such married woman, free and ex■empt from the claims of the representatives of such husband, son or other person, or of their or any of their creditors, respectively: provided, that such exemption shall not apply where the amount of the premium annually paid shall exceed three hundred dollars, unless it shall appear that such premium shall have been paid out of the moneys or funds belonging to such married woman; and provided further, that such exemption shall apply to the insurance money cov-ered by the premium annually paid up to and including the ■sum of three hundred dollars.”
The main.features of the act of 1851 and the act of 1862, the former, however, not being specially referred to, were embodied in sec. 19, ch. 59, Laws of 1870, which, without material change, constituted sec. 2847 of the Statutes, prior to the act of 1891. Such section may be conveniently presented for analysis by numbering the significant parts, inclosing in parentheses those which in letter dr substance are like the Massachusetts law, and inclosing in dashes those which are in letter or substance like the New York law; adopted here, as stated.
1. — “Any married woman may, in her own name or in the name of a third person as her trustee, with his assent, cause "to be insured for her sole use the life of her husband, son or other person for any definite period, or for the natural life of such person; — 2. (and any person, whether her husband or not, effecting any insurance on his own life or on the life -of another, may cause the same to be made payable) or as
It will be seen that 1. was taken from our act of 1862 and' “as to insurance upon the life of the husband” is from the-New York act of 1840, and is not in the Massachusetts law in any form. 2., as regards policies expressed to be payable-to married women, is in our act of 1851 and the Massachusetts law of 1844. That part as to policies assigned to a married woman is not in either act. It appears first in our act off 1870, which was framed with special reference to the law off 1862, but without any mention of the law of 1851. 3. is in the Massachusetts law and in our act of 1851. 4., as to policies payable to married women, is wholly from our act off 1862, and as to policies assigned to married women is first found in our act of 1870. 5. is first found in the law of 1870.. 6. is in the Massachusetts law and our act of 1851. 7., a vital feature, is not in the Massachusetts act. The idea thereof is in our act of 1851, and the phrasing adopted in the act of 1870’ followed the law of 1862. Aside from the word “benefit,” which makes the clause more emphatic, it is the exact counterpart of the New York act and our law of 1862. 8. is found, in the Massachusetts law and our act of 1851, so far as applicable thereto, and in the act of 1862, so far as applicable thereto, with changes to harmonize with the new features-added in 1870.
Thus it will be seen that our law, prior to the act of 1891,.
When our act of 1862 was passed it was not doubted anywhere, as we understand, but that a policy of insurance payable to a married woman, as tbe statute seemed to plainly say, would inure to her benefit in case of her surviving tbe policy period. It has not yet been held in Massachusetts that tbe beneficiary interest of tbe woman could be sold by her or taken adversely by her creditors, while this court bad not yet held that tbe statute did not interfere with tbe absolute control by tbe insured over the policy during bis lifetime. It was not so held till 1868. Kerman v. Howard, 23 Wis. 108. It seems that tbe legislature in adopting tbe New York law as an independent act must have bad a distinct purpose in view, other than to enable a married woman to take out a policy of insurance upon the life of her husband or another, because that existed by necessary inference from tbe act of 1851, and independently thereof. Tbe legislature must also have bad a definite purpose in passing tbe act of 1870, in putting tbe law in tbe form it existed in 1891, without special reference to tbe law of 1851, but with strict regard to the law of 1862, by which all policies payable to married women, issued upon tbe lives of others, were put in one class and it was provided that upon tbe woman surviving till the termination of tbe policy period the proceeds should be paid to her for her sole use and benefit, using tbe feature in that regard
We see no force in the suggestion that the New York law only provided for widows, and that our act of 1862 and the feature thereof now in sec. 2347 includes married women not widows. The extension of the law merely extended the-principle thereof.
The rule of Eadie v. Slimmon in New York is by no means confined to policies taken out by married women. It applies there to all policies payable to such women issued on the lives of others, so far as not otherwise pro.vided in the written law. There is a strong reason for saying that it was so regarded at the time of the passage of the act of 1870, since a most significant feature of the law on which it was based was then,.
We are wholly unable to see any reason for saying that the rule of Eadie v. Slimmon has been judicially changed in New York. True, there are expressions of judges, here and there, which can be gathered together, showing some disfavor, hut, generally speaking, the indications are the other way, and the decisions are universally so. That there should be some judicial leaning towards the right of a married woman to dispose of her insurance as she sees fit need not be wondered at, but that the general trend of judicial authority in New York is in favor of protecting such persons against danger of parting with their policy rights before maturity, seems certain. No discredit should be cast on the early New York case, because it was founded on a law as to the rights of married women before their emancipation from common-law disabilities. After such emancipation, and some twelve years after the early decision was rendered, it was carefully reviewed in Barry v. Equitable L. A. Soc. 59 N. Y. 587, and there in the light of the new situation, upon the ground of stare decisis and reason as well, looking at the matter as an original proposition, it was approved. So important did it seem that the principle early declared should not be judicially impaired that the court went somewhat out of its way to say:
“Legislation enlarging the legal capacity of married women does not supersede the act of 1840, nor give to them other power to deal with a policy issued under it than they had by it; for the reason that the act is an enabling act, confers a special privilege, and is in the nature of a law exempting goods from execution; that the privilege is given in view of an especial legislative intention and policy, which would be subverted if the contingent interests arising under it could be treated and dealt with as the separate property of a married woman, to be disposed of or affected by her subsequent contracts.”
It will not be profitable to extend this opinion by giving a history of Sadie v. Slimmon outside of New York. We venture to say, however, that it has never been disapproved in face of a plain written law exempting a married woman’s beneficiary right from the claims of creditors of the assured, and providing that at the maturity of the contract the proceeds of the policy shall inure to her separate usé and benefit and that of her children, and in case of her surviving shall be payable to her and no one else. The significant words of the original New York statute, as adopted here, which, as shown in Amberg v. Manhattan L. Ins. Co. 171 N. Y. 314, 316, 317, 63 N. E. 1111, needed to be changed before the beneficiary right could be reached by creditors, even after the maturity of the policy, prior to the proceeds reaching her hands, are present today in our statute and are absent from the Massachusetts statute, as we have seen.
In view of the foregoing it seems plain that there is no harmony between the decisions here and those of Massachusetts, or those here and elsewhere, or between the Massachusetts statute and ours, which furnishes any key to the legislative purpose intended to be expressed in the act of 1891.
“Notwithstanding studied efforts of lawmakers, by statutory restrictions, to guard life insixrance made payable to a married woman, so that she will enjoy the same in case of her surviving till the maturity of the policy, to take according to the terms of the contract, the door was left wide open, under the judicial policy of this state, for the person taking out the ■policy and paying the premiums, she being a mere beneficiary,*212 to destroy lier rights in that regard at any time at his pleasure, by designating some other beneficiary to take in her place, or by disposing of the insurance by will.”
Though the statute permitted easily of a contrary reading, till the maturity of the policy with conditions unchanged the beneficiary was regarded as having no interest therein which the assured was bound to respect.
Such was the situation faced by the legislature of 1891. Eadie v. Slimmon had been reconsidered in New York in the light of legislation there affecting it and affirmed upon principle and authority and held applicable to all insurance in favor of married women upon the lives of others payable to them at maturity. The significant statutory feature giving rise thereto, in part, had been incorporated into our system. The common idea of such insurance was to extend help to women in widowhood, or women with future possibilities in that regard, and to put efforts in that respect beyond the power of the beneficiary and that of any one else to defeat the same. With that picture in view, as the legislature must have seen it, what was intended by what it did, if there is any uncertainty in respect to the matter, is strongly suggested by what men would naturally do under the circumstances. If there be any idea more remote from the thoughts of men in general in taking out life insurance of the kind under consideration than any other, it is that the policy when obtained will be mere free property in the hands of the wife as soon as secured, subject to be disposed of by her at pleasure. In the light of the well-known rule for statutory construction,'“the court should look to the whole and every part of the statute, and the apparent intention derived from the whole, to the subject matter, to the effects and consequences, and to the reason and spirit of the law, and so construe it as to harmonize and give a sensible effect to every portion” (Harrington v. Smith, 28 Wis. 43) — can we well doubt what the real legislative purpose was ?
(New York feature) “Any married woman may, in her own name . . . , cause to be insured for her own use the life of her husband, . . . ; and (Massachusetts feature in effect) any person, whether her husband or not, effecting any insurance on his own life . . . may cause the same to be made payable ... to a married woman . . . ; (Massachusetts feature) and every such policy, when expressed to be for the benefit of (. . . (New York feature) made payable to (joint feature) any married woman . . . , (new feature) shall he the sole and separate properly of such married woman and (Massachusetts feature) shall inure to her separate use and benefit and that of her children, (New York feature) and in case of her surviving the period or term of such policy the amount of the insurance shall be payable to her . . . for her use and benefit, free from (new feature) the control, disposition or (New York and Massachusetts feature) claims of her husband and of the person effecting or assigning such insurance and from the claims of their respective representatives and creditors.”
With the thought that was given to the matter when Ellison v. Straw was decided it became manifest to us all that the legislature intended by the'act of 1891 a radical change. That idea has been confirmed by subsequent study. It seemed to us all then that the right of the matter had been reached. No favor was given then to the idea which now prevails, but it was thought to be quite clear that the legislature intended to so provide that the right of a married woman, when a beneficiary in a life insurance policy, would be contingent only upon the policy being kept in force and her surviving to take under it; that till the proceeds thereof were reduced to possession they should be safe from imprudent conduct on her part and the acts of others, in harmony with the presumed intent of the assured person in such cases. It was thought then that
In this opinion we have gone over the subject matter in hand as an original proposition without discovering any reason why the conclusions reached in Ellison v. Straw are not right as to the point under discussion. My remembrance is that the opinion correctly mirrors the discussions which led up to the writing of it.
It is suggested that the question of the assignability of a married woman’s beneficiary right in a life insurance policy was not involved in Ellison v. Straw; that the sole question was whether such right could be seized and appropriated by creditors and that such question is not here, “but we have no disposition or purpose to indicate that, if it were, we should hesitate to adhere to that decision,” thus affirming the adoption of the rule of Eadie v. Slimmon so far as it was grounded on the unassignability of the policy and rejecting the Massa
In Ellison v. Straw the question of whether the policy was assignable was supposed to be the supreme test of whether it could be taken from the beneficiary in adversary proceedings for the payment of her debts. I am entirely unable to appreciate the statement that the consideration of the supposed underlying question was beyond the ultimate one to be decided. Is it true that it is not legitimate in reasoning up to a conclusion as tq the existence of a fact in controversy which is assumed, rightly as is supposed, cannot exist in the. absence of either of several other disputed facts, to take up the minor propositions, either of which being solved in the negative would demonstrate nonexistence of the ultimate disputed fact ? If so, our ideas of logic are all wrong.
One of the turning points in all discussions in New York as to whether a policy could be seized by the creditors of the wife was whether it was assignable by her. Baron v. Brummer, 100 N. Y. 372, 3 N. E. 474; Amberg v. Manhattan L. Ins. Co. 171 N. Y. 314, 63 N. E. 1111. Our statute nowhere says expressly that the beneficiary right of a married woman at any time shall be exempt from the claims of her creditors. If it is her absolute property presently, as held in Massachusetts and elsewhere, there is no legitimate ground for holding it to be beyond the reach of creditors, except that it is un-assignable under the law declaring that it shall be paid to her for her use and benefit at maturity.
Before we are through with this subject we must take hold fully and firmly of one hom or the other of the dilemma which our statute and previous holdings present. That, it was supposed, was fully appreciated in Ellison v. Straw and involved, necessarily, consideration of whether the policy was
It is urged that in deciding tbe former case Archibald v. Mut. L. Ins. Co. was overlooked. My brethren of tbe majority take that view. I do not so remember it. Tbe case was cited then and commented on in appellant’s brief to tbe point that tbe policy was assignable by tbe beneficiary, and tbe respondent replied thereto briefly, saying that tbe language relied upon was a mere side remark and bad no significance, tbe policy being assignable regardless of tbe attitude of the wife. Tbe facts in that regard being perfectly apparent and not pressed upon tbe court particularly, tbe case was not cited in tbe opinion. It were better if it bad been and tbe opportunity not afforded for saying it was overlooked. It was considered utterly unimportant as to tbe decision of tbe court.
One very important feature of our present situation, one that my brethren have entirely overlooked, remains to be mentioned. If appearances are not misleading, the doctrine of Ellison v. Straw, so far as not modified by tbe legislature, has
“any married-woman may, with tbe written consent of tbe person effecting tbe insurance, assign, encumber or dispose of any right, title or interest sbe may bave in, to or under any policy of life insurance, whether on the life of herself or her husband, or of any other person, and whether such policy be-expressed to be for the benefit of or assigned or made payable to such married woman, or in trust for her, in tbe same manner and with like effect as if sbe were unmarried. Tbe provisions of tbis act shall apply to all insurance on lives,, whether effected before or after tbe passage of this act, but. shall not apply to assignments thereof heretofore made.”
"While the retroactive feature thereof is probably not effective, the distinct recognition of the doctrine of Ellison v. Straw and effort not to go counter thereto as to assignments-already made, and determination to remove the disability of married women to assign, under certain circumstances, by necessary inference provided that the policies not referred to should be wholly unassignable. Expressio unius est exclusio alterius.
The purpose of partially removing the disability of married women, as above, was.probably to enable them to use their policies, under certain conditions, as security for borrowed money, thus partly undermining the common purpose of such-insurance. It were better if the ordinary life policy for the benefit of a wife were not assignable at all before maturity, except to procure money when necessary to protect it. It were better if insurance companies would promote that system, instead of seeking to undermine the ancient beneficent purpose of such organizations, sacrificing that for the purpose of securing aid in the making of investments. But that is wholly a matter of policy, not entitled to weight here, except as it is helpful in determining the meaning of ambiguous laws-involving the subject.
Our conclusion is that the judgment should he reversed, because the policies are governed by the law as it stood prior to 3891, but otherwise that it would have to be affirmed on principle and on authority of Ellison v. Straw.