Pendleton v. Great S. Life Ins. Co.

• Decision Date: 22 January 1929
• Docket Number: Case Number: 18867
• Citation: 273 P. 1007,135 Okla. 40,1929 OK 24
• Parties: PENDLETON v. GREAT SOUTHERN LIFE INS. CO. et al.
• Court: Oklahoma Supreme Court

1929 OK 24

273 P. 1007

135 Okla. 40

PENDLETON v. GREAT SOUTHERN LIFE INS. CO. et al.

Case Number: 18867

Supreme Court of Oklahoma

Decided: January 22, 1929

Syllabus

¶0 1. Insurance--Life Policy--Wife as Beneficiary Entitled to Proceeds Though Divorced Before Death of Insured.

A married woman named as beneficiary in an ordinary life insurance policy on the life of her husband is entitled to the proceeds, notwithstanding that she has obtained a divorce before insured's death.

2. Same--Status of Insurance Contract as Oklahoma Contract, Where Consummated in State Between Resident Parties, not Affected by Foreign Company Taking Over Contract or by Change of Beneficiary Indorsed on Policy Outside State.

A contract for life insurance between a resident of Oklahoma and a life insurance company organized and doing business in Oklahoma, premiums and benefits being payable in Oklahoma and the beneficiary being a resident of Oklahoma, is an Oklahoma contract and subject to the laws of the state of Oklahoma. Where such contract is taken over by a foreign insurance company which assumes and agrees to carry out the provisions of the policy, the same remains an Oklahoma contract. The fact that the insured thereafter causes a foreign insurance company, pursuant to the terms of the policy, to change the beneficiary to another person, a resident of Oklahoma, such change being made by indorsement on the original policy at the office of the foreign company outside of the state, does not change the contract from an Oklahoma contract. The change in the beneficiary is pursuant to the original contract and does not constitute a new contract.

3. Same--Change of Beneficiary According to Provision of Policy not a New Contract.

A contract for life insurance payable to a designated beneficiary, providing that the beneficiary may be changed by "filing with the company a written request accompanied by this policy, such change to take effect upon the indorsement of the same on the policy by the company," is complete in itself. The changing of the beneficiary named therein in accordance with the terms of the contract does not constitute a new contract, but is the mere performance of one of the provisions of the contract.

Error from District Court, Jackson County; Frank Mathews, Judge.

Action by Lucille Pendleton against the Great Southern Life Insurance Company and Jasper Pendleton, administrator of estate of Clifford F. Pendleton. From judgment in favor of the administrator, plaintiff brings error. Reversed.

Cargill, Whiteside & Snodgrass, for plaintiff in error.

Weeks, Morrow, Francis & Hankerson, Neil Powers, and Robinson & Oden, for defendant in error Jasper Pendleton, Adm'r.

ANDREWS, J.

¶1 The plaintiff in error instituted this action, as plaintiff below, against the Great Southern Life Insurance Company, a corporation, and Jasper Pendleton, as administrator of the estate of Clifford F. Pendleton, deceased, in the district court of Jackson county, Okla., to recover the proceeds of the life insurance policy issued by the Oklahoma National Life Insurance Company on the life of Clifford Flora Pendleton, he being the same person as Clifford F. Pendleton.

¶2 Clifford F. Pendleton made application for a life insurance policy to the Oklahoma National Life Insurance Company, which was an Oklahoma corporation. He was a resident of Jackson county, Okla., and he named in the application as beneficiary his wife, Ruby Pendleton, who was a resident of Jackson county, Okla. Under the terms the application and policy were to be considered together as one instrument, and the policy became effectual upon its actual delivery to the insured. It was payable at the home office of the company at Oklahoma City. Thereafter, the Great Southern Life Insurance Company assumed, reinsured, and agreed to pay all of the outstanding policy obligations of the Oklahoma National Life Insurance Company, including this one.

¶3 This insurance policy provided that the insured might change any designated beneficiary at any time during the continuance of the policy, provided that it was not then assigned, by filing with the company a written request accompanied by the policy, such change to take effect upon the indorsement of the same on the policy by the company, whereupon all interests of the former beneficiary should cease. The insured wrote the Great Southern Life Insurance Company at Houston, Tex. , asking that the beneficiary in the policy be changed from Ruby Pendleton, wife, to Lucille Pendleton, wife, and this change was indorsed on the policy by the Great Southern Life Insurance Company at its office in Houston, Tex.

¶4 Thereafter a divorce decree was granted to Lucille Pendleton from Clifford F. Pendleton, by the district court of Jackson, county, Okla., and after the expiration of six months from the date of the divorce decree the said Clifford F. Pendleton died leaving the insurance policy in full force and effect, and the amount due thereunder is $ 2,038.23.

¶5 The Great Southern Life Insurance Company admitted its indebtedness under the policy and alleged that the same was claimed by the plaintiff, Lucille Pendleton, and by the defendant Jasper Pendleton, administrator of the estate of Clifford F. Pendleton, deceased, and offered to pay the money to whomsoever the court should find was entitled thereto. The trial court rendered judgment that the Great Southern Life Insurance Company pay the amount due as aforesaid to the court clerk of Jackson county, Okla., and the payment was made thereunder for the use and benefit of whomsoever should be entitled thereto under the order of the district court of Jackson county, Okla. No appeal was taken from that judgment, and the sum of $ 2,038.23 is now in the hands of the court clerk of Jackson county, Okla., subject to the disposition of this cause.

¶6 The defendant in error Jasper Pendleton, administrator of the estate of Clifford F. Pendleton, deceased, defended the action and contended:

"First: The designation of Lucille Pendleton as beneficiary under the policy having taken effect in the state of Texas, her rights as such beneficiary are determinable by the laws of the state of Texas."

"Second: The rights of Lucille Pendleton under the policy are determined by the laws of the state of Texas and termination of the relation of husband and wife as between Clifford Flora Pendleton and Lucille Pendleton terminated the insurable interest which Lucille Pendleton had in the life of Clifford Pendleton."

¶7 To these contentions the plaintiff replied: First, that the policy constitutes an Oklahoma contract and her rights are determinable by the laws of the state of Oklahoma; and, second, that the decree of divorce, based upon a petition which did not state a cause of action, was void and the marriage relation never terminated thereby.

¶8 The trial court made findings of fact and conclusions of law by which the court concluded that the contract of insurance and the change in the beneficiary from Ruby Pendleton to Lucille Pendleton created and constituted said policy a Texas contract, and that under the laws of the state of Texas, upon the granting of an absolute divorce, the rights of the husband or wife to recover as beneficiary under the insurance policy ceased, and that the funds due under the insurance policy reverted to the estate of the deceased. The court further concluded that the divorce was valid, binding, and existing and not void, and judgment was rendered directing the payment of the sum of $ 2,038.23 by the court clerk of Jackson county to Jasper Pendleton, as administrator of the estate of Clifford F....