Allen v. Aetna Life Ins. Co.

• Decision Date: 19 August 1933
• Citation: 62 S.W.2d 916,228 Mo.App. 18
• Parties: VIOLA ALLEN, VERBAL PARKER AND GOLDIE MILLER, RESPONDENTS, v. AETNA LIFE INSURANCE CO., A CORPORATION, INTERPLEADER, AND REVA ALLEN, APPELLANTS
• Court: Missouri Court of Appeals

62 S.W.2d 916

228 Mo.App. 18

VIOLA ALLEN, VERBAL PARKER AND GOLDIE MILLER, RESPONDENTS, v. AETNA LIFE INSURANCE CO., A CORPORATION, INTERPLEADER, AND REVA ALLEN, APPELLANTS

Court of Appeals of Missouri, Springfield

August 19, 1933

Appeal from the Circuit Court of New Madrid County.--Hon. John E Duncan, Judge.

AFFIRMED.

Judgment affirmed.

Sharp & Baynes for appellants.

Finch & Finch for respondents.

SMITH J. Allen, P. J., and Bailey, J., concur.

OPINION

SMITH J.

This is a suit growing out of a life insurance policy issued upon the life of one Emanuel R. Davidson by the Aetna Life Insurance Company of Hartford, Connecticut, payable to Martha V. Allen, named in the caption of this case as Viola Allen, and Reva Allen, daughter and son-in-law of the insured. The record shows that Viola Allen obtained a divorce from her husband, Reva Allen, some months before her father Emanuel R. Davidson died. On the 8th day of June, 1925, Emanuel R. Davidson signed an application for the insurance and on the 8th day of July, 1925, a policy was issued for $ 2000 payable one-half to Martha V. Allen, daughter, and one-half to Reva Allen, son-in-law.

On the 7th day of September, 1931, a written request for a change of beneficiaries in said policy was made by Emanuel R. Davidson wherein he requested that the beneficiaries under said contract be changed to provide that the amount to become due thereunder by reason of the death of the insured shall be made payable to Viola Allen the sum of $ 1000 and Goldie Miller and Verbal Miller the sum of $ 500 each, all daughters of the insured.

This request was received by the insurance company, and the company notified the insured that the policy would have to be returned to it before the change of beneficiaries could be made. The policy was not returned to the company and on the 16th day of September, 1931, Emanuel R. Davidson died. The policy, at the time of the death of the insured, was in the hands of Reva Allen.

The three daughters above named made request for payment to them of the entire amount of the policy, and this suit for the payment thereof was filed. Reva Allen was made defendant. The petition asks for judgment against the Aetna Life Insurance Company in the sum of two thousand dollars, and for a finding that Reva Allen has no right title, claim or interest in said policy, and for costs. Summons was issued and served upon Reva Allen. The defendant Aetna Life Insurance Company filed an answer in the nature of a bill of interpleader, confessing liability on the policy in the sum of two thousand dollars and asked permission to pay the same into court. This was granted; the sum was paid into court, and the insurance company was discharged. Defendant Reva Allen filed an answer in which he prayed judgment against the defendant Aetna Life Insurance Company in the sum of one thousand dollars.

There is not much controversy over the facts in the case. On the 8th day of June, 1925, Davidson made application to the insurance company, an old line company, for an ordinary life non-participating policy on his life in the sum of two thousand dollars payable to "Martha V. Allen and Reva Allen, daughter and son-in-law of the insured, equally, or the survivor." The policy was issued and delivered to Davidson, who turned the policy over to Reva Allen, and the policy was thereafter in the possession of Reva Allen, and all premiums were paid by Reva Allen. The premiums were $ 46.48 payable semi-annually. The company evidently had notice of the fact that Reva Allen was to make the payments for all notices for the payment of premiums were mailed to Reva Allen.

The record shows that Reva Allen filed a petition for divorce from Viola Allen, and that she filed a cross-petition and in May, 1931, she obtained a decree of divorce from Reva.

On the 7th day of September, 1931, Emanuel R. Davidson signed and mailed to the Aetna Life Insurance Company a request to change the beneficiaries under this policy to Viola Allen, Goldie Miller and Verbal Parker. This request was sent in to the insurance company and returned by it to Davidson, without any action thereon with the request that the application to change the beneficiaries be accompanied by the policy in accordance with the express terms thereof. Nothing further was done relative to changing the beneficiary and on the 17th day of September, 1931, ten days after the original application to change had been signed, Emanuel R. Davidson died, and no change of beneficiary was ever made. The testimony was that Reva Allen paid all of the premiums paid on this policy of life insurance and also showed that Davidson said after he had taken out this policy for the benefit of Martha V. Allen and Reva Allen that he would take out a policy in favor of his other children provided they would pay the premiums as Reva Allen had done in the case of the policy in question. The testimony also showed that no demand was ever made upon Reva Allen for the policy by Mr. Davidson for the purpose of having the beneficiary changed at the time he attempted to do so.

Under the foregoing statement of facts the circuit court held that Reva Allen should recover $ 270.88, the amount of the premiums paid by him and that the remainder of the policy should be divided between Viola Allen, Verbal Parker and Goldie Miller. After an unavailing motion for new trial, defendant Reva Allen, has brought this case to this court for its consideration, under several assignments of error, such of which assignments as we deem necessary with evidence pertaining thereto, we shall hereinafter consider.

The policy in this case was introduced in evidence and it contained these words, "Premiums payable during the lifetime of the insured. Insurance payable at death. Non-participating." So we think there is no doubt but that the policy in question is an ordinary life non-participating policy issued by a company operating under what is commonly called or designated as an old line life insurance company, and is governed by the provisions of Article 2, Chapter 37 of the Revised Statutes of Missouri, 1929. [Mattero v. Central Life Ins. Co. (Mo. App.), 215 S.W. 750.]

We have reached the conclusion that Emanuel R. Davidson had a legal right to apply for insurance in this company upon his own life and make Reva Allen, his son-in-law, beneficiary under the policy, provided the insured paid for the insurance, or arranged for the payment upon his own account. [Lee v. Equitable Life Assur. Co. (Mo. App.), 189 S.W. 1195, 1196; English v. Reliable Life & Accident Ins. Co. (Mo. App.), 272 S.W. 75.]

This conclusion is reached, not because Reva Allen was the son-in-law of the insured, or had an insurable interest in the life of the insured, but, because an insured may take out a policy upon his own life and upon his own payment of premiums and make anyone that he may choose the beneficiary, provided the application and the payments are his own voluntary acts and deeds. We are not attempting to hold that these acts may not be done by an agent.

In this case, however, the testimony does not show conclusively that the policy was taken out by the insured or that any of the payments were made by him or for him.

The record does show that the application was signed by Emanuel R. Davidson.

When Reva Allen was...