Carruthers v. $21,000 (Formerly New York Life Ins. Co.)

• Decision Date: 14 August 1981
• Citation: Carruthers v. $21,000 (Formerly New York Life Ins. Co.), 434 A.2d 125, 290 Pa.Super. 54 (Pa. Super. Ct. 1981)
• Parties: Lois CARRUTHERS, Claimant, Appellee and James W. Dolbow, Claimant, Appellant, v. $21, 000 (FORMERLY NEW YORK LIFE INSURANCE COMPANY). Appeal of James W. DOLBOW, Claimant.
• Court: Pennsylvania Superior Court

434 A.2d 125

290 Pa.Super. 54

Lois CARRUTHERS, Claimant, Appellee and James W. Dolbow, Claimant, Appellant, v. $21, 000 (FORMERLY NEW YORK LIFE INSURANCE COMPANY).

Appeal of James W. DOLBOW, Claimant.

Superior Court of Pennsylvania.

August 14, 1981

Argued Dec. 2, 1980.

Joseph E. Lastowka, Jr., Media, for appellant.

Joseph P. Caranci, Media, for appellee.

Before PRICEWATKINS and MONTGOMERY, JJ.

MONTGOMERY Judge.

Lois Carruthers, appellee, and James W. Dolbow, appellant, are both claimants of the proceeds of a group life insurance policy in the sum of $21,000.00 written by the New York Life Insurance Company.New York Life was granted leave to pay the proceeds of the policy into court.

The policy was written on the life of Theodore Dolbow, Jr. who died February 13, 1976.Theodore Dolbow, Jr. was initially insured under the policy on January 6, 1966, while an employee of the Reading Company.At that time, he designated Theresa V Dolbow, his wife, as the beneficiary.On December 13, 1974, he changed the beneficiary to his brotherJames W. Dolbow, one of the present claimants.He again changed the named beneficiary one February 28, 1975, this time to Lois Carruthers, the other claimant herein.Both changes were executed in full compliance with the provisions of the policy.

The present dispute resulted from the contents of a holographic will which was admitted to probate.It was written by the decedent on the back of an envelope and read:

"As my last will & testament all insurance and any and all articles that belong to me and willed to anyone other than my brotherJames W. Dolbow is hereby changed to read willed to James W. Dolbow.

/s/ Theodore R. Dolbow, Jr.

/s/10-26-75"

That part of the insurance policy applicable in the instant case reads:

"The Group provides that ... the proceeds of your life insurance are payable to the beneficiary last designated by you before your death ... Any part of your insurance for which there is no beneficiary designated or surviving at your death will be payable to the executor or administrator of your estate ..."

"A beneficiary can be designated, or ... changed, only by a written notice received by or on behalf of New York Life.No such designation or change will be effective until recorded by or on behalf of New York Life, but once it has been so recorded, it will take effect as of the date the notice was signed, subject to any payment made or other action taken by or on behalf of New York Life before such recording."

The issue, therefore, is whether the will dated October 26, 1975, accomplished a change of beneficiary from Lois Carruthers, who had been properly named therein on February 28, 1975.The lower court held that the will did not work a change and we agree.There being no facts in dispute, the order was by way of a summary judgment based on the applicable principles of law.

Generally, in order to effect a change of beneficiary the mode prescribed by the policy must be followed.Sproat v. Travelers Insurance Company,289 Pa. 351, 137 A. 621(1927);Riley v. Wirth,313 Pa. 362, 169 A. 139(1933).As noted in the excerpt from the policy set forth above, notice of a change must be by a writing received by the insurer, or on its behalf, and recorded before a change becomes effective.Once recorded, the change becomes effective as of the date of the writing.The policy herein, however, does not prescribe the form of the written notice.

It is not disputed that notice of the will was not brought to the attention of the insurer until after the death of the insured.Although he lived approximately three and one-half months after executing the will, the insured made no effort to comply with the...