83 Kan. 665 | Kan. | 1911
Lead Opinion
The opinion of the court was delivered by
This is an action upon an administrator’s; bond to recover insurance money received upon the life of John H. Hunt, and used as a part of his, estate. The
On the 2d day of December, 1897, at Burlington, Iowa, John H. Hunt joined the association known as the Merchants’ Life Association, located at that place. He thereby became a member of that association, with his life insured in the sum of $2000. It was an insurance association organized upon the mutual plan. Hunt died intestate, April 30, 1907, at Gas, Allen county, Kansas, leaving three minor children as his sole heirs at law, his wife having died before he did. John D. Remsberg was duly appointed administrator of Hunt’s estate, and duly qualified and entered upon his duties as such. In May following he collected the $2000 insurance money from the association and reported it to the probate court.
When John H. Hunt received his certificate of membership he named as beneficiary his wife, Martha Elizabeth Hunt, who, on February 26, 1900, died at their home in Packwood, Iowa, where they resided when the insurance was obtained. A few years afterward the family removed to Allen county, Kansas, where they resided until the death of the insured.
There is a provision in the certificate of membership which reads: “In the event of the death of the beneficiary prior to that of the member, or in case none is named, the benefit then to be payable to the legal representative of the deceased member.” No other beneficiary was named by Hunt after the death of his wife, although he had a right to make such an appointment at any time after her death.
The administrator, under the directions and orders of the probate court, paid the proceeds of the insurance certificate to the creditors of Hunt’s estate, to the
The question as to who constitutes the legal representative of the holder of an insurance policy is not very well settled. The proper interpretation seems to ■depend upon the context of the instrument where the term is used and the surrounding circumstances. In the case of Griswold v. Sawyer et al., 125 N. Y. 411, it was held, as summarized in 28 L. R. A. 383:
“The words ‘legal representatives’ mean, ordinarily, ■executors or administrators, and that meaning will be •attributed to them in any instance unless there be facts ■existing which show that the words were not used in their ordinary sense, but to denote some other and different idea. The facts in this case are not sufficient to ■change the ordinary meaning of this language, and we therefore must attribute to the insured an intention in conformity to the ordinary meaning given to those words.”
In Cox v. Curwen, 118 Mass. 198, the syllabus reads:
“A by indenture conveyed all the property inherited from his father to B in trust to retain and hold it ■during the life of A, to convert the real estate into personalty, to render accounts to him annually, and to pay to him from time to time the income, and, if necessary, part of the principal at the discretion of the trustee, for the benefit of A and his daughter, and after his death to transfer all the estate then remaining to his ‘legal representatives.’ Held,, that there was nothing in the indenture to show that the words ‘legal representatives’ were intended to have other than their ordinary meaning, ‘executors and administrators,’ and, A having devised the residue of the estate, that the trust*668 estate should be conveyed by B to A’s executor, to be distributed according to the terms of the will.”
The second paragraph of the syllabus in the case of Johnson et al. v. Van Epps, 110 Ill. 551, reads:
“The words ‘legal representatives/ in a policy of insurance, as designating the beneficiaries, when there is nothing in the context or surrounding circumstances to indicate a contrary intention, mean ‘executors or administrators.’ A policy of insurance payable to the legal representatives of the assured is the same as if made payable to himself.”
In the case of Lodge v. Weld, 139 Mass. 499, it was said:
“There can be no doubt that the ordinary meaning of the term ‘legal representatives’ is executors and administrators. (Cox v. Curwen, 118 Mass. 198; Price v. Strange, 6 Madd. 159.) In wills the term may mean whatever the testator intended; but if the meaning is not controlled by the context, it means executors or adminisrators.” (p. 504.)
In volume 5 of Words and Phrases Judicially Defined (p. 4077) the case of Geoffroy v. Gilbert, 36 N. Y. Supp. 884, is summarized as follows:
“Primarily the words ‘legal representatives’ signify the executors or administrators of a deceased person. They, however, have been construed to refer to blood relations as heirs or next of kin, and are held to mean that class of persons where the circumstances indicate such intention, and where a father took out a life policy payable to his daughter four years old or her legal representatives, and she married and died before her father, her husband is not entitled to the proceeds of the policy.”
The ordinary meaning of the words “legal representative” is executors and administrators, and they will be given this meaning where there is nothing in the instrument in which they are used to indicate an intention to use them in any other sense. (Cox v. Curwen, 118 Mass. 198; Lodge v. Weld, 139 Mass. 499; Johnson et al. v. Van Epps, 110 Ill. 551.)
The ordinary meaning of the language used would lead to this conclusion, and we are unable to find anything either in the instrument where this language is used or elsewhere in the case which to our minds shows any other intent. The judgment is reversed, with direction to enter costs in favor of the defendants.
Concurrence Opinion
(concurring specially) : Concurring with, the decision of the majority of the court, I desire to add:
(1) The articles of incorporation of the insurance company which issued the policy in question declare that beneficiaries may be “husband, wife, relative, legal representative, heir or legatee.” It must be presumed that these terms were used in their ordinary sense, and that each represents a distinct class. The Iowa statute set out in the pleadings authorizes insurance for such beneficiaries, using the same terms, and including creditors also. The term “legal representative,” as used in the articles referred to and in the statute, clearly applies here, as it does ordinarily, to an administrator or executor.
(2) The policy was written in accordance with the power given by the articles of incorporation and the statute, naming the wife as the beneficiary, with the proviso that in case she died and no new beneficiary was designated by the member the amount of the policy should be paid to his legal representative. The wife did die before the insured; no new beneficiary was named; hence it was payable to the administrator, unless the apparent meaning of the language of the statute, the articles and the policy is controlled by some statute or judicial interpretation to the contrary.
(3) The provisions of the Iowa statute relied upon by the appellees do not appear to affect the question. These provisions are: “But no certificate issued for the benefit of a wife or children shall be thus changed so as to become payable to the creditors” (Iowa Code of 1897, § 1789) and “a policy of insurance on the life of an individual, in the absence of an agreement or assignment to the contrary, shall inure to the separate use of the husband or wife and children'of said individual, independently of his creditors” (Iowa Code of 1897, § 1805). The first provision referring to benefit
(4) The Iowa decision relied upon by the appellees, In re Estate of Conrad, 89 Iowa, 396, does not sustain their contention. The policy there was made payable to the wife of the insured or to her legal representatives, or, if not living at the time of the death of the insured, the sum then to be payable to her children. It will be observed that the beneficiary named was the wife or her legal representative, and that there was an express provision added that her children should receive the money. The court said:
“It is expressly provided in the policy that, if the assured be not living at the time the policy becomes payable, the amount thereof shall be payable to her children. There was no authority to make payment to the administrator of her estate in any event. The clause authorizing payment to ‘her legal representatives’ does not mean payment to their administrator. It contemplates payment to some legal representative*672 appointed by the wife to receive the money for her. There can be no other meaning attached to the expression ‘legal representatives,’ because it is expressly provided that, if the assured be not then living, payment shall be made to the children or their guardian.” (p. 398.)
As the policy in the foregoing case required the payment to be made to the children the term “legal representative,” as there used, necessarily meant a person ■authorized to receive payment for them. No other meaning could be given consistently with the terms of the policy. An earlier case in that state, Kelley v. Mann, 56 Iowa, 625, held that it was the duty of an .administrator to collect a policy payable to personal representatives, but also held that it could not be applied to the payment of debts, because of a statute expressly exempting the proceeds of certain life insurance therefrom. That statute, however, was not pleaded in this case (which was decided upon a motion for judgment on the pleadings), but if it had been pleaded it would not have been controlling here, for exemption laws are not a part of the contract — they are subject to the laws of the forum. (Chicago, Rock Island &c. Railway v. Sturm, 174 U. S. 710; 2 Freem. Ex., 3d ed., § 209.)
In Schultz v. Citizens’ Mutual Life Ins. Co., 59 Minn. 308, it appeared that the policy was made payable to, and for the sole use of, the legal representatives of the insured. On the application, made part of the policy, the insured stated that the money should be paid to his legal heirs, “wife if living.” Construing the language of the two instruments together, the court held that the policy was payable to the wife and children of the deceased. This decision supports the rule stated in the principal opinion that it is permissible to construe the term “legal representative” with reference to the context.
(5) The answer, admitted by the motion for judg
Dissenting Opinion
(dissenting) : While the technical' meaning of the term “legal representative” is an executor or administrator, it is frequently used in insurance policies like the one in this action to mean next of kin or heirs. Looking at the statute and the charter of the association in pursuance of which the contract was made, as well as the surrounding circumstances, it appears quite manifest to me that the term was used here in the broader sense and meant a natural representative, like husband, wife, relative or heir, in connection with whom the term was used. It was so interpreted in Olmstead v. Benefit Society, 37 Kan. 93, 96. The certificate in question was issued by an Iowa association, organized under an Iowa statute, and we may look to that statute and the decisions under it in interpreting the contract. The statute provides that the purpose of insuring the lives of the members is to
“The words ‘legal representatives’ have a secondary sense, well recognized, which harmonizes entirely with the purposes and objects of the association. The instances are not few in which they have been held to mean heirs at law. ‘The terms “legal representatives,” “personal representatives,” etc., are often used in statutes and instruments of writing in a broader sense, so as to include all persons who stand in place of and represent the interest of another, either by his act or by operation of law.’ 18 A. & E. Encycl. of L. 814.” (Harton’s Estate, 213 Pa. St. 499, 503.)
Another section of the statute provides that in the absence of an agreement to the contrary a policy “shall inure to the separate use of the husband or wife and children of said individual, independently of his creditors” (Iowa Code of 1897, § 1805), and in the same section there is a provision that the proceeds of a policy shall be exempt from liability for any debts, and still other provisions to the effect that benefits, indemnity
“It is always permissible to construe these-words in that way, especially in wills and policies of life insurance, wherever it is apparent from the context or subject matter that they were used in that sense. They will be construed in that way more readily in policies of life insurance than in almost any other kind of instrument, for the reason that such insurance is very commonly intended as a provision for the family of' the insured.” (p. 313.)
If a term in a statute is of doubtful import it should', be construed in connection with the entire statute and! the obvious purpose of the lawmakers, and when the whole statute and charter of the association are considered it seems reasonably clear to me that provision was not being made for the benefit of creditors. The declared purpose of the statute was to provide pro