125 Ga. 206 | Ga. | 1906
(After stating the facts.) Where one has procured insurance on his own life in good faith, is an assignment of the policy by him to one who has no insurable interest in his life valid, when the assignment is not made by way of cover for a wager policy? This exact question has never been decided by this court. There is a contrariety of judicial opinion on the subject in other jurisdictions. “An insurance upon life is a contract by which the insurer, for a stipulated sum, engages to pay a certain amount of money if another dies within the time limited by the policy. The life may be that of the assured, or of another in whose continuance the assured has an interest.” Civil Code, § 2114. “The assured may direct the money to be paid to his personal representative, or to his widow, or to his children, or to his assignee; and upon such direction, given and assented to by the insurer, no other person can defeat the same. But the assignment is good without such assent.” Ib. § 2116. A policy of life-insurance, even before the death of the assured, is a chose in action, arising upon contract, and therefore may be assigned. Steele v. Gatlin, 115 Ga. 929. As will be seen,i the Civil Code, § 2114, limits the life that may be insured to that of the person taking out the insurance, or to that of another in the continuance of whose life he has an interest; but
In Ancient Order of United Workmen v. Brown, 112 Ga. 545, a mutual beneficiary association issued a certificate of membership on the life of Harvey, in which Miss White1 was named as the beneficiary. Subsequently Harvey surrendered this certificate to the order, which cancelled the same, and a new. certificate was issued, in which, at his direction, Mrs. Brown, who was neither related to nor in any way dependent upon him, was designated- as the beneficiary, her
Counsel for defendant in error cites the case of Exchange Bank of Macon v. Loh, 104 Ga. 446. In that case Hudgins applied to the insurance company for a policy on his life for five thousand dollars. The company sent to its local agent two policies, each for that amount, on Hudgins’s life, both payable at his death to his legal representatives. Hudgins accepted one and declined to take the other. The agent, knowing that Hudgins was indebted to the Exchange Bank, carried the policy which Hudgins had declined to accept to the cashier of the bank, stated to him the facts, and requested him to take the policy for the bank, as a creditor of Hudgins, and pay the premiums thereon. The cashier consented to do so, provided Hudgins would assign the policy to the bank. This was done by Hudgins, the agent of the insurance company delivering the policy to the bank and receiving, from it the premium due thereon. The cashier had no conference or consultation, in any way, with Hudgins about the transaction, and it was distinctly understood between the cashier, representing the bank, and the agent of the insurance company, representing it, that the policy was taken out by the bank for its own protection as a creditor of Hudgins, and that in no event was Hudgins to be liable for the first premium or any future premiums, either to the bank or to the insurance company. No demand was ever made upon Hudgins for any premium, but the bank paid all premiums on the policy, without charging Hudgins for the same. On the trial of an equitable petition brought by Loh, as administrator of Hudgins, against the
Another case cited by counsel for defendant in error is Quillian v. Johnson, 122 Ga. 49. There it appears that Thomas, on April 15, 1902, procured an insurance pqlicy on his own life, payable at his death to his legal representatives or assignees. On February 11, 1903, he assigned it to Quillianj who had no insurable interest in the life of Thomas, the assignment reciting that it was for value received, subject to any indebtedness due on the policy to the insurance company. The insurance company, on April 27, following, recognized the assignment by an indorsement thereon. The policy and assignment were delivered to Johnson, the local agent of the company and a creditor of Thomas. Contemporaneously with the assignment, Quillian executed a written instrument in which it was stated that as there was a quarterly premium of $151.52 due on the policy January 15, 1903, with thirty days grace allowed for its payment, and as Thomas had requested Quillian to pay the same for him in case Thomas did not pay it by February 15, 1903 Thomas “for valuable considerations has assigned said policy to Quillian.” This instrument further stipulated, that Quillian should pay the premium on or before February 15, 1903; that Johnson should hold the assignment for ninety days, and Thomas should have the privilege óf repaying the premium to Quillian within that period, and in case he did so the assignment should be returned to him, but upon his failure so to do, then the policy should go to Quillian “to do as he deems best with it;” that should Thomas die within the ninety days, Quillian should pay to named minor children of Thomas specified amounts out of the proceeds of the policy, and pay Johnson the amount due him by Thomas on certain .promissory notes. There ivas no consideration for the assignment other than Quillian’s promise to pay the past-due quarterly premium, which he afterwards fulfilled, and his agreement to pay, out of the proceeds of 'the policy, specified amounts to Thomas’s children, and to pay therefrom the notes of Thomas held by Johnson. Thomas died within the ninety days, and Quillian paid Johnson the amount of the notes. This court
“The stronger reasons, the decided trend of the decisions of the courts, and the great weight of authority concur to establish the rule that an insurable interest in an assignee of a policy of life-insurance is not essential to the validity of the assignment if the party to whom it was originally issued had such an interest, and the assignment is not made as a cover for the issue of a wager policy.” Gordon v. Ware Nat. Bank (U. S. C. C. A.), 132 Fed. 444. The courts of Alabama, Kansas, Kentucky, Missouri, North Carolina, Pennsylvania, Texas, and Virginia have not adopted this rule, but have followed the decision rendered in the earlier case of Franklin Life Ins. Co. v. Hazzard, 41 Ind. 116, wherein it was declared that such an assignment was as obnoxious to the rule
Of course one can not do indirectly what the law prohibits him from doing directly; and as it is unlawful for a person to effect insurance upon the life of another in the continuance of whose
Our conclusion is that the petition did not set forth a cause of action against Mrs. Eylander, and the court, therefore, erred in overruling the general demurrer.
Judgment reversed.