Ester v. Prudential Ins. Co. of Am.
Decision Date | 30 June 1941 |
Docket Number | No. 64.,64. |
Citation | 298 Mich. 330,299 N.W. 96 |
Parties | ESTER v. PRUDENTIAL INS. CO. OF AMERICA. |
Court | Michigan Supreme Court |
OPINION TEXT STARTS HERE
Action to recover proceeds of a group life policy alleged to have been wrongfully paid to a third party by Catherine Ester, administratrix of the estate of Robert Alexander, deceased, against the Prudential Insurance Company of America, a New Jersey corporation, consolidated for trial with a similar action by Eileen Alexander, through her next friend, against the Prudential Insurance Company of America. From a judgment for the administratrix, defendant appeals.
Reversed without new trial.
Appeal from Circuit Court, Wayne County; Guy A. Miller, Judge.
Argued before the Entire Bench.
Paul Oren, of Detroit (Richard Cross, of Detroit, of counsel), for appellant.
Frank P. Darin and Frank L. Amprim, both of Wyandotte, for appellee.
Robert Alexander was employed by the Great Lakes Steel Corporation until June 17, 1937. He was killed in an automobile accident on July 5, 1937. At the time of his death, he was insured under a group insurance policy No. 3706 in which the Prudential Insurance Company of America was insurer. His participation in the above policy was evidenced by certificate of participation No. 6620. This certificate provided for payment of $2,000 upon his death to ‘Beneficiary-Rita Alexander, wife of said employee.’
The record in this case establishes the following facts: that Rita Alexander was not the wife of Robert Alexander at the time the certificate was issued or at the time of his death; that after the certificate was issued, Robert Alexander legally married Eileen Zurin; and that subsequent to this marriage, Robert and wife discussed the advisability of changing the beneficiary named and as a result the policy was torn up, but no other steps were taken to have a new beneficiary named.
The certificate of participation provided: ‘’
The first question that arises in this case is the right of Robert Alexander to designate Rita Alexander as beneficiary.
In Aetna Life Insurance Co. v. Sower, 273 Mich. 423, 263 N.W. 415, we said: ‘The designation of the beneficiary as his wife has no conclusive force as neither claimant was his wife.’
In Howard v. Chrysler Corporation, 275 Mich. 706, 267 N.W. 585, 587, we said: See, also, Metropolitan Life Ins. Co. v. Gray, 290 Mich. 219, 287 N.W. 441;Chrysler Corp. v. Gutt, 293 Mich. 420, 292 N.W. 354.
Under the above authority the rule is well established that in language designating a beneficiary of insurance, reference to relationship or status is mere descriptio personae. It follows that Robert Alexander had a legal right to name Rita Alexander as his beneficiary, even though she never became his wife.
The next question may be stated as follows: Was the beneficiary changed in accordance with the terms of the insurance contract? The general rule is that an unexecuted intention of the insured to change a beneficiary will not be sufficient.
In Ancient Order of Gleaners v. Bury, 165 Mich. 1, 130 N.W. 191, 193, 34 L.R.A.,N.S., 277, the policy of insurance, as to change of beneficiary, provided:
In this case the consent of the supreme secretary was never given to the transfer, nor was the certificate fee of 25 cents delivered to the secretary of the local arbor. We there said:
“When a mutual benefit society has, under the powers and within the limit of its charter, provided in its by-laws a particular method of changing a beneficiary, or has set forth in its certificate a way by which the change may be made, no change of beneficiary may be made in any other mode or manner. The reason for this rule is not difficult to discover. It is based upon the familiar maxim that the expression of one thing excludes other and different things. When a society frames a set of rules providing for the distribution of a fund, and for the right of beneficiaries and members, it must be assumed that it excludes every other mode and manner. Any other conclusion would lead to the most interminable confusion in the law applicable to the distribution of insurance money, and fritter away in the expenses of uncertain litigation, funds created for the benefit of widows, orphans, and heirs. But there is still another reason. It cannot be said that a beneficiary named in a certificate has no rights therein because he has no vested rights. The beneficiary has a right to the proceeds of the certificate of insurance, subject to the right of the member to change the beneficiary according to the terms of the by-laws and regulations of the society, which are a part of the contract of insurance; and the right of the beneficiary to have this contract carried out in the manner provided for is as binding upon the member as his right to change the beneficiary is binding upon the beneficiary and the society.' Niblack on Insurance, pp. 415, 416.
‘The case of Fink v. Fink, 171 N.Y. 616, 64 N.E. 506, would seem to be quite in point. We quote from the opinion:
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