Bloomington Mutual Benefit Ass'n v. Blue

Citations

• 120 Ill. 121
• 11 N.E. 331
• 1887 Ill. LEXIS 832

Syllabus

<p>1. Life insurance —by. whom a policy may be obtained, and for whose benefit—of a wager policy. A policy taken out on the life of a third person, by a beneficiary, the latter having no pecuniary interest in the life of the assured, is a wager policy, and as such is void.</p> <p>2. Public policy forbids one person who has no interest in the continuance of the life of another, from speculating on that life by procuring a policy of insurance thereon, without the knowledge or consent of the assured.</p> <p>3. A person has an insurable interest in bis own life, and has a right to procure a policy on the same, and have it made payable to any one whom he may appoint, although the benefiei try designated may not have any pecuniary interest in the continuance of the life of the assured.</p> <p>4. Same—of the doctrine as applied to companies formed on the mutual benefit plan. And when, under a charter of a mutual benefit association, a member thereof may take out a policy on his own life and devise such policy to a stranger, there is no reason why he may not have the policy made payable to the proposed beneficiary directly, in lieu of doing the same thing by appointment in a will.</p> <p>5. Section 1 of the act of 1883, relating to corporations on the mutual benefit plan, which provides that such corporations, etc., may be organized for the purpose of furnishing life indemnity or pecuniary .benefits to the widows, orphans, heirs or relatives, by consanguinity or affinity, or legatees, of deceased members, does not prohibit the issue of a policy to a member, made payable to one not related to him, and who has no pecuniary interest in the continuance of the life of such member.</p> <p>6. Same—estoppel to claim, a want of authority to insure for benefit of a person appointed as beneficiary. Where a mutual benefit association voluntarily enters into, a contract of insurance upon the life of a member for the benefit of one not expressly authorized or prohibited from becoming a b