Reilly v. Penn Mut. Life Ins. Co. of Phila.
Decision Date | 09 March 1926 |
Docket Number | No. 37124.,37124. |
Citation | 201 Iowa 555,207 N.W. 583 |
Parties | REILLY v. PENN MUT. LIFE INS. CO. OF PHILADELPHIA ET AL. |
Court | Iowa Supreme Court |
OPINION TEXT STARTS HERE
Appeal from District Court, Polk County; Jos. E. Meyer, Judge.
Action upon a policy of life insurance. The insured paid the proceeds of the policy into court, and the controversy is between the beneficiary named in the policy and the surviving widow, who is also the administratrix of the estate of the insured. A decree was entered in favor of the beneficiary named in the policy, and the plaintiff appeals. Affirmed.Wilson & Shaw and Howard L. Bump, all of Des Moines, for appellant.
Stipp, Perry, Bannister & Starzinger and W. E. Miller, all of Des Moines, for appellees.
The admitted facts are that Paul V. Reilly owned 50 shares of the capital stock of the J. W. Turner Improvement Company, incorporated, and in 1906 became a director and the secretary thereof. The corporation was engaged in the business of general contracting for the construction of public works, such as sewers, paving, etc. It had a capital stock of $15,000, owned almost entirely by Reilly and J. W. Turner. On March 5, 1910, Reilly made application to the Penn Mutual Life Insurance Company for two policies upon his life for $5,000 each. The application was accepted by the company and policies issued designating the J. W. Turner Improvement Company as beneficiary. At or about the same time J. W. Turner made application to the same company for two policies, one for $10,000 and one for $5,000, upon which life policies were issued, also designating the corporation as beneficiary. The right to change the beneficiary was not reserved in the policy. The premiums on all of the policies were paid by the corporation for a time, and thereafter they were paid by borrowing the amount of the insurance company on the policy. Reilly resigned his office as secretary and treasurer, and also as a director, of the corporation, and organized a new and independent business of the same character as that in which the corporation was engaged. Reilly was not, at the time he resigned his office in the corporation, indebted to it in any way except for the premiums advanced by it upon the policies. He retained his stock in the corporation until his death, which occurred November 6, 1923. The policies upon the lives of Reilly and Turner were obtained for the use and benefit of the corporation in pursuance of an agreement and understanding between them prior to making application therefor. Appellant claims the proceeds of the policy, less the amount due the corporation for premiums advanced, as administratrix of her husband's estate. The ground upon which her claim is predicated is that the policies were taken out on the life of her husband and made payable to the corporation as beneficiary for the sole purpose of securing the payment of any and all indebtedness of her husband thereto.
It is, as already stated, conceded by the corporation that the insured was indebted to it only for the premiums paid by it. The answer alleges that the policies were taken out by the corporation upon the life of Reilly, who was then secretary and treasurer and one of the directors thereof, for the use and benefit thereof, that it paid the premiums as stated, and that it is therefore entitled to the proceeds thereof. The only testimony introduced upon the trial to show the purpose for which the policies were taken was that of J. W. Turner. We quote the following brief excerpt therefrom:
[1] From this testimony it is clear that the policy was not taken out by Reilly and made payable to the corporation as security for indebtedness of his thereto. The arrangement was mutual between the parties, and it is manifest that the insurance was taken out for the general benefit and use of the corporation.
The proposition of appellant is briefly and succinctly stated by her counsel in argument as follows:
“Our position in this matter may be stated as follows: The insurance upon the life of Reilly for the benefit of the corporation is in the nature of insurance for the benefit of a creditor, and when the interest of the creditor ceases in the assured, the right to the proceeds of the policy ceases, but does not make the policy void; on the other hand, the proceeds belong to the estate of the deceased, and the beneficiary named, the creditors or the corporation, is trustee of the funds for the benefit of the decedent's estate.”
[2][3][4] We may, for the purposes of this case only, assume that if the policy was taken out for the benefit of the corporation...
To continue reading
Request your trial-
Wagner v. Nat'l Engraving Co.
... ... provision of insurance policy on deceased's life. From a decree dismissing the complaint, ... Guardian Mutual Life Ins. Co. v. Hogan, 80 Ill. 35, 22 Am.Rep. 180;Bruce ... States, 2 Cir., 50 F.2d 107-109;Connecticut Mut. Life v. Schaefer, 94 U.S. 457, 24 L.Ed ... Goodwin, 223 Ala. 185, 135 So. 161;Reilly v. Penn Mut. Life, 201 Iowa 555, 207 N.W ... ...
- Reilly v. Penn Mutual Life Ins. Co. of Philadelphia
-
Sinclair Refining Co. v. Long
... ... had insurable interest in life of its president and general ... manager, which ... Insurance Company, against the Penn Mutual Life Insurance ... Company, and against ... 1355307 Northwestern Mutual Life Ins. Co ... 20,000.00 ... P ... 1855863 ... In ... Conn. Mut. Life Ins. Co. v. Schaefer, 94 U.S. 457, ... 24 ... In ... Reilly v. Penn Mut. Life Ins. Co., 201 Iowa, 555, ... ...