Brown v. Modern Woodmen of America

Citations

• 97 Kan. 665
• 156 P. 767
• 1916 Kan. LEXIS 374

Syllabus

<p>SYLLABUS BY THE COURT.</p> <p>1. Fraternal Insurance — Contract of Member to Change Beneficia/ry— Change Not Complete — Rival Claimants — Equities. Generally the rights of holders and beneficiaries under fraternal benefit certificates rest solely upon the contract between the member and the association as found in its constitution and by-laws. But when potent and manifest equities appear in favor of some of the rival claimants by reason of contracts made and carried out with the deceased member, the association raising no objection, the contest may become one purely for equitable cognizance and determination.</p> <p>2. Same — Right of Member to Change Beneficiary. While ordinarily the member has no vested right in the fund, still by an agreement to change beneficiaries in consideration of funds advanced he may so bind himself as to preclude his beneficiary or heirs from asserting their claim to the proceeds against a party who advanced large sums on the strength of such agreement, although a completed change of beneficiary was not made in accordance with the constitution and bylaws of the association.</p> <p>3. Same — Contract to Change Beneficiary — Money Loaned — Premiums Advanced — Rights of Claimants Determined Upon Equitable Considerations. The holder of a fraternal benefit certificate in consideration of loans advanced and to be advanced and premiums paid and to be paid by his brother made him beneficiary. Later a son of the brother repaid his father and made further advancements to the member upon consideration of being substituted as beneficiary. The request for cancellation of the certificate and issuance of a new one with the nephew as beneficiary was duly executed by the member and turned over to the brother, who delivered it to his son, but it was never transmitted to the association. After the member’s death, the nephew who had advanced considerably more than his promised portion of the proceeds of the certificate, and two sons of the former member w