Metro. Life Ins. Co. v. Zgliczenski

• Decision Date: 06 December 1922
• Docket Number: No. 50/551.,50/551.
• Citation: 119 A. 29
• Parties: METROPOLITAN LIFE INS. CO. v. ZGLICZENSKI et al.
• Court: New Jersey Court of Chancery

119 A. 29

METROPOLITAN LIFE INS. CO.

v. ZGLICZENSKI et al.

No. 50/551.

Court of Chancery of New Jersey.

Dec. 6, 1922.

Bill of interpleader by the Metropolitan Life Insurance Company against Mary Zgliczenski and Boleslaw Wisniewski. Decree permanently restraining prosecution of other suit against complaint and awarding fund to defendant Zgliczenski.

Randolph Perkins, of Jersey City, for complainant.

Charles M. Egan, of Jersey City, for defendant Zgliczenski.

Edward B. Twardus, of Newark, and Richard Hartshorne, of New York City, for defendant Wisniewski.

LEWIS, V. C. On March 30, 1910, the Metropolitan Life Insurance Company issued a 20-year life endowment policy of life insurance for $3,000, in which it promised—

"to Anton Zgliczenski of Jersey City, state of New Jersey, herein called the insured, on the thirtieth day of March, nineteen hundred and thirty, if the insured be then living, or upon receipt at said home office of due proof of the prior death of the insured, to Mary Zgliczenski, wife of the insured, beneficiary, with the right of revocation, three thousand dollars, less any indebtedness hereon to the company and any unpaid portion of the premium for the then current policy year upon surrender of this policy properly receipted."

The policy also contained the following provision with regard to the change of beneficiary:

"Change of Beneficiary.—When the right of revocation has been reserved, the insured, if there be no existing assignment of the policy, made as herein provided, may, while the policy is in force, designate a new beneficiary with or without reserving right of revocation by filing written notice thereof at the home office of the company, accompanied by the policy for suitable indorsement thereon. Such change shall take effect upon the indorsement of the same upon the policy by the company. If any beneficiary, under either a revocable or irrevocable designation, shall die before the insured, the interest of such beneficiary shall vest in the insured."

The policy further provided, with regard to the right of assignment, as follows:

"Assignment.—No assignment of this policy shall be binding upon the company unless it be filed with the company at its said home office. The company assumes no responsibility as to the validity of any assignment."

After the policy had been in force for three years, provision was made for loan and cash surrender options, upon certain terms and conditions specified. The loans were to be made "on sole security of this policy, and on proper assignment thereof." The cash value fixed at the end of a policy year could be obtained during such policy year if all premiums to the end of such year had been paid. In case of surrender or lapse after the policy had been in force three years, it was provided that—

"The owner thereof, within three months after any default, may elect (a) to accept the cash value of this policy, or," etc.

Anton Zgliczenski died on May 7, 1921. By the table contained in the policy the cash or loan value, after the policy had been in force 11 years, was $1,242.

On August 17, 1912, the insured, with the knowledge and assent of the beneficiary, borrowed $240 from the insurance company, on the security of the policy, and the policy was duly assigned to the company in accordance with its terms.

On April 13, 1921, the insured gave to Boleslaw Wisniewski a promissory note for $1,000 payable in 90 days, containing this...