Missouri Val. Life Ins. Co. v. McCrum

• Decision Date: 07 January 1887
• Citation: 12 P. 517,36 Kan. 146
• Parties: THE MISSOURI VALLEY LIFE INSURANCE COMPANY v. JOSEPH MCCRUM
• Court: Kansas Supreme Court

12 P. 517

36 Kan. 146

THE MISSOURI VALLEY LIFE INSURANCE COMPANY v. JOSEPH MCCRUM

Supreme Court of Kansas

January 7, 1887

Error from Doniphan District Court.

ACTION by McCrum against The Missouri Valley Life Insurance Company to recover upon a certain policy issued by said company. April 3, 1885, the plaintiff recovered a judgment against the defendant for $ 525.05, and costs. The Company brings the case to this court. The opinion states the material facts.

Judgment reversed and cause remanded.

T. A Hurd, for plaintiff in error.

W. D Webb, for defendant in error.

HORTON C. J. All the Justices concurring.

OPINION

HORTON, C. J.:

The facts in this case are substantially as follows: On July 10, 1872, the Missouri Valley Life Insurance company issued and delivered to Daniel Snyder its paid-up policy of insurance on his life, for the sum of $ 502.65, payable to Elizabeth and Desylvia Snyder, his children, in sixty days after due notice and proof of his death. On June 12, 1883, Daniel Snyder and Elizabeth and Desylvia Snyder executed a written instrument of assignment on the back of the policy, as follows:

"TROY, KANSAS, June 12, 1883.-- For value received, without recourse on me, I hereby sell and assign to C. M. Parker the within policy, and authorize her to receive, collect and receipt for any money that may be paid thereon.

DANIEL SNYDER.

ELIZABETH SNYDER.

DESYLVIA SNYDER.

Witness: A. PERRY."

The policy of insurance with the written indorsement thereon was at the time of its execution delivered to Mrs. C. M. Parker, who paid a valuable consideration therefor. On November 14, 1883, Daniel Snyder died. After the death of Daniel Snyder, and prior to August 2, 1884, Mrs. Parker wrote the word "Canceled" across the face of said assignment, on the back of the policy, and signed the same, "Canceled.-- C. M. PARKER." Mrs. Parker then delivered the policy to Elizabeth Snyder and Desylvia Kinsey, nee Snyder. On August 2, 1884, Elizabeth Snyder and Desylvia Kinsey executed another written instrument of assignment on the back of the policy, as follows:

"For value received, we hereby sell and assign to Joseph McCrum the within policy, and authorize him to collect the same.

August 2, 1884.

ELIZABETH SNYDER.

DESYLVIA KINSEY."

At said time Elizabeth Snyder and Desylvia Kinsey delivered the policy of insurance with all the indorsements thereon to Joseph McCrum, who commenced this action in the court below to recover the amount of the insurance policy. Mrs. Parker was not in any way related to nor a creditor of Daniel Snyder. The proof of death of Daniel Snyder was presented on behalf of Mrs. Parker, about December 26, 1883, and this embraced the affidavits of Elizabeth Snyder and Desylvia Kinsey, and also the certificate of the physician who attended Daniel Snyder to the time of his death.

Under the circumstances, we do not think that McCrum can recover upon the policy. It was decided in Insurance Co. v. Sturges, 18 Kan. 93, that--

"A person who has no interest in another's life cannot purchase or take by assignment an insurance policy on such life. Such a thing would be clearly against public policy, and is not authorized by law."

To the same effect are: Warnock v. Davis, 104 U.S. 775; Gilbert v. Moose, 104 Pa. 74; Ruth v. Katterman, 112 id. 251; May Ins., 2d ed., § 74.

The exact question now at issue was not passed upon in Insurance Co. v. Sturges, because in that case the insurance company only claimed the assignment was void. Mrs. Parker, who accepted the assignment and paid for the policy, had no insurable interest in the life of the insured; therefore the policy was not assignable to her; she took the policy solely for the purpose of speculation; the speculation was upon the life of the insured, and the sooner that was determined, the better the speculation; the policy so obtained was a mere wager, and void. The sale and transfer thereof to Mrs. Parker by Elizabeth and Desylvia Snyder, the beneficiaries, was an attempted fraud upon the insurance company by which it was issued. After Mrs. Parker took the policy, if she could collect anything thereon she was thereby directly interested in the early death of the insured. The insurance company issuing the policy did not intend it should reach or belong to anyone directly interested in his death. The law will not permit a person thus interested to enforce a policy of insurance; all such speculation, or traffic in human life, independent of any statute, is condemned as being against public policy, and therefore not to be tolerated.

All the time Mrs. Parker had possession of the policy she believed that upon the death of the insured she would be paid the full amount thereof. All this time she was directly interested in the speedy death of the insured. This policy was placed in her possession, not only with the written consent of the beneficiaries, but upon a valuable consideration paid to them for the same; they therefore aided in creating, in the mind of Mrs. Parker, a desire for the early death of the insured; they held out to her the temptation to bring about the event insured against. Mrs. Parker was not successful in obtaining any money upon the policy, because she ascertained after the service of proof of death by her that it could not be collected in her hands, and therefore handed the same back to the beneficiaries. The law does not tolerate attempted frauds any more than it does those that are consummated. In making the transfer and assignment, and in receiving...