81 Iowa 200 | Iowa | 1890
I. The insurance was effected in October, 1882. The contract of insurance was made upon an application, of which the following is a copy :
“ I, the undersigned, desire to become a member of the Iowa Knights of Pythias Insurance Association, and hereby certify that I will true answers make to all questions, and, to the best of my knowledge and belief, will not conceal or omi.t to state anything regarding my health, past or present, affecting the expectancy of my life, and agree that any untrue or fraudulent statements made in this application, or to the medical examiner, or any concealment of facts by me made, or my suspension from my lodge, or voluntarily severing my connection with this association, shall forfeit all right, claim and interest, and all right, claim and interest of my heirs, executors, administrators and assigns, in and to all benefits and privileges of the association. I direct that all benefit to which I may be entitled from the association be paid to Mary Burrows, related to me as wife, subject to such future disposal of the benefits as I may hereafter direct.
“[Signed.] William Burkows,
“ [ Signature of applicant.] ”
The benefit certificate issued by the association was in these words :
“No. 142. Duplicate. $2,000. Iowa Knights of Pythias Insurance Association. Benefit Certificate. This certifies that Knight William Burrows is a member
“ (Signed.) Byroh A. Beesoh,
“ E. H. Hibbebt, President.
“[Seal.] Secretary.”
William Burrows died at the city of Davenport, in this state, on the twenty-sixth day of April, 1888. On the twenty-first day of said month, he executed an instrument in writing, in these words :
“ I hereby surrender the benefit certificate issued to me, William Burrows, by the Iowa Knights of Pythias Insurance Association, and direct a new one to be issued tome, payable five hundred dollars ( $500) to Elizabeth Burrows, related to me as mother, and five hundred dollars ($500) to my sister, Mrs. Grill, the balance to pay my legal debts ; and the balance to John Sandry, wife, two children and nephew, Prank McCoon, share
“ Witness my hand and seal, April 21, 1888.
“ [ Signed.] William Burrows.
“ Signed by William Burrows in presence oí
“ D. C. Garrett,
“C. O. ANDERSON,
“E. L. Raee.”
There'is no controversy about the- execution of this paper, and, although it appears that Burrows was quite feeble at the time he signed the same, there is no evidence that it was not his voluntary act, or that those who were' present and prepared the paper, and witnessed the signature, used any influence or persuasion to induce him to sign it. They were present at his request for the purpose of aiding him in carrying out his desire to change the beneficiary in the certificate. One of said persons testified as a witness as follows: “I got home that morning from a three weeks’ absence. Mr. Burrows sent for me, and said he wanted to change his policy to his mother and sisters, and wanted to know whether or not I could do anything for him. He said he had one policy he expected to leave to his wife, and the other policy he would rather have changed. He said his mother and sisters were as much entitled to it as his wife on account of the treatment he had had lately. He said he was afraid to stay in the house after the policy was changed. I said I did not know much about it, but would go and see Clark. I went to Clark, and we went to Heinz & Hirschl to see about having the policy changed.” Another testified as follows : “I was summoned to the sick bed of William Burrows, and he urged me to assist in making this change; that he had long intended to make the change, but his wife had prevented him from doing it, and he wanted me to help him with it, which I promised I would do, and, when the paper was brought, there were some minor changes to be made.”
It further appears in evidence that the said paper was placed in the mail at Davenport, on the evening of the twenty-third day of April, 1889, inclosed in an
“Heihz & Hirschl,
“April 2'3, 1888, 202 West Second Street, )
“ Davehport, Iowa. )
QiE. H. Hibben, Esq., Marshalltown, Iowa.
“Dear Sir : — We inclose assignment, pertaining to transfer of benefit certificate issued to Wm. Burrows, and affidavit in relation thereto. We inclose one dollar ($1), fifty cents being intended for the transfer. You can return the change in postage stamps. Please make the change at once, transfer at once, and advise us accordingly. Yours respectfully.”
At the time the instrument by which it was sought to change the beneficiary was signed by said Burrows, his wife was in possession of the certificate, and was requested to surrender it. This she refused to do in the most positive terms, saying that she would burn it up and destroy it rather than deliver it up, and that she would see Clark, the trustee, “in hell, before she would give him the paper.” Immediately after the transaction was completed, the persons who assisted Burrows
II. The foregoing is a statement of the facts necessary to be considered in determining which of the claimants is entitled to the fund in the hands of the trustee. It will be observed that, by the very terms of the benefit certificate, the application is made part of the contract between the insurer and the insured. The obligation of the association was to pay the amount due to the wife of Burrows, subject to such future disposal of the benefits as he might thereafter direct. If the contract contained no other requirement, we think that it is quite plain that this direction to make payment to some one other than Mary Burrows might be made by assignment, or by any direction in writing which would protect the association in making payment of the loss to the person designated by the insured. It is insisted,
The requirement that the certificate should be surrendered upon payment of the loss must receive a reasonable construction. Suppose it should appear upon the death of a member that the certificate had been lost or destroyed. No one would claim that the insurer could escape payment by reason of the failure to surrender the certificate. And it is to be observed that there is no requirement in the contract that the certificate shall be surrendered in order to effect a change of the beneficiary. It does not even provide that it is necessary to notify the association of the change at the time it is made. By the very terms of the contract, the change of the beneficiary is a mere direction to the association, which it is bound to obey. The “disposal of the benefits” may be made by the mere direction of the insured. This act does not require the assent of the association. It is not a new contract between the insurer and the insured. If the association receives notice of the change in the beneficiary before it has been in any way prejudiced, it would seem that it would be bound to obey the direction. These views appear to us to be founded on sound reason,
We look in vain for any rule or regulation enacted by the association with which Burrows failed to comply. It is true that the blank on the back of the certificate indicates that the manner of conducting the business of the association was to surrender the first certificate, and issue another to the new beneficiary, and the evidence shows that this was the practice of the company. But this was a mere regulation for the convenience of the company, of which its
We have set out the facts attending the execution of the paper by Burrows, and the time of its reaching the association, with more particularity than may have been necessary. In our opinion, the fact that Burrows died before the association received the instrument is not a material question. Under this contract Burrows could have changed the beneficiary by an assignment on the certificate, or by a separate paper, and it was complete, at least so far as Mary Burrows was concerned, when it was delivered to Clark, the trustee. Notice to the insurer of the assignment was not necessary, unless required by the contract of insurance. Bliss on Life Insurance, sec. 333; May on Insurance, secs. 388, 396, and authorities cited. Where a policy is assignable, or where a benefit certificate authorizes a change of beneficiaries, which is the same thing in effect as an assignment, notice of the assignment is not necessary to its validity, unless required by the contract of insurance. The execution of the instrument by Burrows, directing that the money be paid to his mother and brothers and sisters, .operated as an equitable assignment. The consent of Mary Burrows was not necessary to effect the object. And she could not defeat