Scott v. Dickson
| Citation | 108 Pa. 6 |
| Parties | Scott v. Dickson, Administrator, & c. |
| Decision Date | 05 January 1885 |
| Court | United States State Supreme Court of Pennsylvania |
November 6, 1884
1. Life insurance, unlike fire or marine insurance, is not a contract for indemnity, but is a contract to pay a certain sum of money in the event of death.
2. A man may insure his own life, paying the premium himself, for the benefit of another who has no insurable interest; such a transaction is not a wagering policy.
3. Where the intent of the insured, at the time he took out the policy, that the insurance should be for the benefit of a friend is apparent, the mere form in which such intent is executed is not essentially material to the validity of the beneficiary's claim under the policy.
4. Where one has an insurable interest at the time an insurance is effected upon the life of another for his benefit, the fact that his interest ceases to exist at or prior to the death of the insured will not deprive him of the right to receive the insurance money as against the personal representatives of the insured.
5. A surety on an official bond has an insurable interest in the life of the obligor. His right to receive the amount of a policy on the obligor's life, issued for his benefit, is not affected by the fact that no breach of the conditions of the bond ever occurred.
6. A applied for a policy of insurance on his life. When he called to lift the policy, he told the company's agent that he wanted the policy transferred to B. The agent furnished him with a blank form of assignment which A. then and there executed in duplicate, one being forwarded to the company and the other retained by A., who also retained the policy and paid all the premiums. Upon A.'s death the insurance company paid the amount of the policy to a stakeholder. In a suit to determine whether A.'s administrator or B. was entitled to the fund:
Held, that while the assignment, as such, was invalid for want of delivery to B., yet, it being apparent that A.'s original intention was to insure his own life for B.'s benefit, the form of the transaction was immaterial, and the assignment would be treated as a direction by A. to pay the money to B., given simultaneously with the issuing of the policy, and with the same effect as if written therein:
Held, therefore, that B. was entitled to said fund.
Before MERCUR, C. J., GORDON, PAXSON, TRUNKEY, STERRETT, GREEN and CLARK, JJ.
ERROR to the Court of Common Pleas No. 1 of Allegheny county : Of October and November Term, 1884, No. 168.
Assumpsit, by David Dickson, administrator, & c., of Archibald Dickson, deceased, against John F. Scott.
The parties filed the following case stated, in the nature of a special verdict for the opinion of the court:
Archibald Dickson, bachelor, late of the city of Pittsburgh, died November 1st, 1883, intestate, (so far as yet appears,) leaving two brothers and two sisters, and letters of administration upon his estate were duly granted to one of said brothers, the plaintiff.
On December 30th, 1882, Archibald Dickson made an application to the Mutual Life Insurance Company of New York, through William P. Wooldridge, the Pittsburgh agent of said company for a policy of insurance upon his life, and a few days later said company issued its policy of insurance, No. 236,992, dated the date of the application aforesaid, and forwarded the same to said Wooldridge for delivery.
A copy of said policy, so far as material to this case is hereto attached, marked Exhibit A, and made part hereof. On January 4th, 1883, Archibald Dickson went to the office of said Wooldridge to lift the policy, and upon its being produced said to Wooldridge that he wanted to transfer it to John F. Scott, " the best friend I have in the world." Wooldridge called the attention of Archibald Dickson to the company's requirement in case of transfer, as printed upon the policy, and then procured two of the blank forms for assignments used by said company, both of which were then filled up and signed by Archibald Dickson. A copy thereof is hereto attached, marked " Exhibit B," and made part hereof. One of the two papers so executed was delivered to Wooldridge, who forwarded it to the general office of the company, where the same was duly received and noted. The other of the two papers so executed, with the policy, remained in the possession of Archibald Dickson until his death. Archibald Dickson himself paid all the premiums upon said policy, notice of maturity of the same as they fell due being sent to him pursuant to his request, made to said Wooldridge at the interview above mentioned. He never told John F. Scott that he had procured or transferred such policy, and the first actual knowledge said Scott had of the existence of the policy or its transfer to himself was after the death of Archibald Dickson.
John F. Scott was not in any manner related to Archibald Dickson by blood or marriage, nor was he at any time a creditor of Archibald Dickson. Said Scott had been for some years a surety upon Dickson's official bond, but the latter had, to the time of his death, faithfully fulfilled the condition of said bond, and neither principal nor sureties were liable thereon.
The said insurance company has paid the sum of four thousand and eleven dollars ($4,011) on proof of loss furnished by defendant at an expense of fifty dollars, and the said parties, plaintiff and defendant, having united in a receipt to said company (made necessary by notice from plaintiff not to pay defendant), have placed the said sum of four thousand and eleven dollars ($4,011) in the hands of William Scott, to be paid, less the cost of proofs of death, to the person entitled thereto, in accordance with the final judgment in this case, but as between said plaintiff and defendant, for the purpose of the questions hereby raised, the same is to be regarded as in the hands of the defendant.
If the court shall be of opinion that the plaintiff is entitled to recover from the defendant the amount paid by said company (less the amount of expenses as aforesaid), upon said policy, then judgment to be entered for plaintiff, and against the defendant, for one dollar; but if the court shall be of opinion that the plaintiff is not entitled to recover as aforesaid, then judgment to be entered for defendant; the costs to follow the judgment, and either party to have the right to sue out a writ of error herein.
EXHIBIT A.
THE MUTUAL LIFE INSURANCE COMPANY OF NEW YORK.
| Semi-endowment. | Amount, $2000 End. |
| Age 32 years. | $4000 Life. |
One half annual premium, $57.76.
In consideration of the application for this policy, and of the truth of the several statements made therein, and of the premiums hereinafter specified, promises to pay at its home office, in the city of New York, unto Archibald Dickson, of Pittsburgh, in the county of Allegheny, state of Pennsylvania, or his assigns, two thousand dollars, on the thirtieth day of December, in the year 1902, if then living, at its said office of the company, in the city of New York, or if he should die before that time, then in like manner to pay the sum of four thousand dollars to his executors, administrators, or assigns (any indebtedness to the company on account of this contract to be first deducted therefrom), within sixty days after satisfactory proof at its said office of the death of the said Archibald Dickson during the continuance of this policy upon the following conditions: (… ..)
In witness whereof, the said, The Mutual Life Insurance Company of New York, has caused this policy to be signed by its President and Secretary, at its office in the city of New York, the thirtieth day of December, A. D. one thousand eight hundred and eighty-two.
| ISAAC F. LLOYD, | ROBERT A. GRAMNIS, |
| Secretary. | Vice President. |
(UPON BACK OF POLICY.)
Provisions and requirements referred to in this policy.
NOTICE.
Assignments. --The company declines to notice any assignment of this policy until the original or a duplicate or certified copy thereof shall be filed in the company's home office. The company will not assume any responsibility for the validity of an assignment.
EXHIBIT B.
Form of Assignment.
For one dollar, to me in hand paid, and for other valuable considerations (the receipt of which is hereby acknowledged), I hereby assign, transfer and set over to John F. Scott, of Pittsburgh, Pa., all my right, title and interest in this policy, No. 236,992, issued by The Mutual Life Insurance Company of New York, and for the consideration above expressed I do also, for myself, my executors and administrators, guarantee the validity and sufficiency of the foregoing assignment to the above named assignee, h executors, administrators, and assigns, and their title to the said policy will forever warrant and defend.
Dated in Pittsburgh, this 4th day of January, 1883.
| In presence of | ) |
| ) | ARCHIBALD DICKSON. |
| GEO. W. RODE. | ) |
The court, after argument, entered judgment for the plaintiff as follows:--
August 2d, 1884. Under the facts set out in the foregoing case stated, we are of opinion that plaintiff is entitled to recover, to wit: the amount of $4,011, less the cost of proofs of death, as specified in said statement, and therefore now direct judgment to be entered for plaintiff and against defendant in the sum of one dollar.
The defendant took this writ of error, assigning for error, the said judgment.
William R. Blair (William Scott with him), for the plaintiff in error.--We submit that Scott acquired the policy as a gift inter vivos, and became entitled, as against the donor's legal representatives, to receive and retain the money paid by the insurance company. Dickson's assignment, delivered to...
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