9 Mo. App. 469 | Mo. Ct. App. | 1881
delivered the opinion of the court.
In the year 1849 a policy of insurance was issued by the defendant on the life of the plaintiff, Theophilus Packard, upon his application, in the sum of $4,000, payable on the event of his death, to his wife, Elizabeth P. W. Packard, and in the event of her death prior to that of the insured, then to her children. Theophilus Packard paid the annual premiums until the year 1860. He then opened a correspondence with the defendant concerning a change of the policy which should leave out his wife, and make his children the only beneficiaries. He was informed that this could be done without his wife’s consent. The old policy was returned to the defendant, and another was issued, bearing the same number, date, and amount of premium, and being a reproduction of the first in all particulars, excepting the names of the beneficiaries, of whom Mrs. Packard was not made one. No additional premium was required on account of the change, although the insured was older, by eleven years, than when the first policy was issued. The change was made without the knowledge or •consent of Mrs. Packard, who, in 1873, notified the defendant of this fact, and of her claim to be still considered
If the claim of the plaintiffs, that the substituted policy
It is insisted for the plaintiffs, that Mrs. Packard never held such a proprietary interest in the original policy of 1849
It is by no means certain that, under the common law, a policy of life insurance for the benefit of one having no pecuniary interest in the life, would be void in the hands of the beneficiary. Such is declared to be the rule in Ruppert v. Insurance Company, 7 Robt. 155. The learned judge there adds, that “the only manner in which a father could provide for his wife or minor children, by way of a life-policy upon himself, was to insure his life for his own benefit.” If this were really the settled rule, it might well be maintained in the present case that Mrs. Packard never acquired a vested right in the original policy, and that the contract remained subject to any modification that might be ágreed upon between insurer and insured, as the only contracting parties. But this view is not uniformly sanctioned, even by the English authorities. In the year 1744, a statute was enacted, entitled “An act for regulating insurances upon lives, and for prohibiting all such insurances except in cases where the persons insuring shall have an interest in the life or death of the persons insured.” 14 Geo. III., c. 48. In Craufurd v. Hunter, 8 Term Rep. 14, it was said by Gross, J., that whoever read that statute “ must see that before that time a wagering policy was not illegal. The words of that statute clearly show that before that time any person might have insured without interest.” Expressions of like effect were used in British Insurance Co. v. Magee, Coo. & Al. 182, and in several later cases. But in Dalby
When it is once settled that a life-policy is valid and enforceable on behalf of the beneficiary named therein, there seems no difficulty in determining that the interest of such beneficiary cannot be disturbed, without his consent, by the mere act of the person insured cooperating with the insurer. In the case of a wife or children, the transaction has been regarded as a voluntary settlement, irrevocable by the grantor, although of doubtful assurance against the claims of creditors. In Fortescue v. Barnett, 3 Myl. & K. 36, the defendant held a policy on his own life, which he assigned by voluntary deed to trustees for the benefit of his sister and her children. The company had no notice of the assignment. Afterwards, he surrendered the policy to the insurance company, for valuable consideration. It was held, on a bill of equity against him, that the defendant could not thus defeat the settlement upon his sister and her children, and that he must give security to guarantee them against any loss of the benefits which should accrue to them from the policy, if kept alive. In the matter of the Succession of Kugler, 23 La. An. 455, it was held, on general principles, that “ a policy of insurance on the life of a man,
In most of the States where controversies like the present have arisen, there are statutes which expressly authorize insurance upon the lives of husbands for the benefit of their wives, and place the married women', as to such policies, on the footing of femes sole. The primary object of such enactments is, simply, to remove the mai-ital disability. If this were all, however, it might be asserted that, while the married woman may hold a certain property in the policy, so long as its existence continues, yet the husband, as the Only contracting party known to the insurer, may, nevertheless, modify his contract, with the cooperation of the latter, even so as to withdraw, in effect, his voluntary bounty to the wife. But it is uniformly held that the transaction, if effectual for any purpose in the interest of the wife, creates an irrevocable trust. Hence, an assignment of such a policy, made by the husband and joined in by the wife under duress, will be held invalid. Barry v. Assurance Soc., 59 N. Y. 587 In Bliss on Ins., sect. 318, it is stated as the general doctrine, that “ a policy and the money to become due under it belong, the moment it is issued, to the person or persons named in it as the beneficiary or beneficiaries ; and that there is no power in the person procuring the insurance by any act of his, by deed or by will, to transfer to any other person the interest of the person named.” Surely, if he cannot transfer such an interest, it must be equally beyond his power to destroy it of his own volition.
It is urged for the plaintiffs, that the defendant’s receipt of annual premiums on the substituted policy, after its knowledge that Mrs. Packard had not consented to the change, and its assurances to Mr. Packard that the change made was lawful and proper, must be held to estop the defendant against any assumption that the substituted policy is not binding. There is no estoppel in the case. The
The judgment must'be affirmed.