35 A.2d 96 | Pa. Super. Ct. | 1943
Argued October 5, 1943. The death benefits under a benefit certificate were claimed by the widow of the deceased who had been a member in good standing of the beneficial association which issued the certificate. The designated beneficiary therein was no relative of the deceased member, but he contends that he is entitled to the proceeds by reason of being the named beneficiary in the certificate.
The association filed a petition for interpleader, and was permitted to pay the fund into court.
The issue was tried by a judge of the municipal court, without a jury, who found that the fund was payable in accordance with the by-laws of the association to plaintiff, the widow of the deceased member. Claimant, the named beneficiary, has appealed.
Nicholas Kopachuk died on November 9, 1940. The certificate had been issued to him on August 1, 1928, and his brother was named as beneficiary. On May 5, 1931, Kopachuk changed the beneficiary and named appellant as beneficiary. The deceased member had been married to plaintiff since 1910, and this relationship existed at the time of his death.
It has been held frequently that such a certificate of a beneficial association creates no vested interest in the beneficiary named therein during the lifetime of the member to whom it was issued. Shepler v. Pennsylvania R. Co. et al.,
We are of the opinion that the designated beneficiary was not an eligible or lawful beneficiary, and consequently is not entitled to the fund; that disposition of the fund must be made according to the rules of the association and the laws of the state; and that plaintiff is accordingly entitled to the fund.
In Stasevicius v. Slauzis et al.,
But in the present case there was no valid waiver of any by-law requirement by the association whereby appellant became entitled to the fund; and statutory requirements are not subject to waiver by such an association. "Fraternal beneficial associations are organized for the purpose of providing relief to relatives and dependents and not for the purpose of doing a general insurance business": Mizanin v. Mihuc et al.,
Section 218 of the by-laws of the association, in force when the certificate was issued and at the time the member died, provided: "The mortuary benefit shall be bequeathed only to the person, or persons, in the following order: (1) To the surviving husband or wife, in the event there are no children. . . . . ."
The Act of May 20, 1921, P.L. 916, was repealed and replaced by the Act of July 17, 1935, P.L. 1092,
Appellant had no right to be named as a beneficiary under the by-laws or under the provisions of the act of assembly then in force; the member was never dependent upon him. Petrik v.National Slovak Union et al., supra; Mizanin v. Mihuc et al., supra. *611
The association could have liberalized its by-laws after the enactment of the Act of 1935, but it failed to do so, and under the Act of 1935 benefits payable by the association were still limited to the classes and in the order designated by the by-laws. Section 11 of the Act of 1935, 40 P. S. § 1061, provides that "any beneficial member may direct any benefit to be paid to such person or persons, entity, or interest as may be permitted by the laws of the society."
The designation of appellant as beneficiary was not in conformity with the by-laws, and he was not otherwise a lawful beneficiary. Stasevicias v. Slauzis et al., supra, p. 427. His designation being invalid, plaintiff, the widow of the deceased member, is entitled to the fund, and the court below properly so found.2
Judgment is affirmed.