Frederick v. Fidelity Mut. Life Ins.

Citations

• 75 Pa. Super. 77
• 1920 Pa. Super. LEXIS 228

Syllabus

<p>Bankruptcy — insurance on bankrupts life — Gash surrender value of policy — Recovery—Right of trustees — Right of beneficiary.</p> <p>A trustee in bankruptcy brought an action to recover the cash surrender value of an insurance policy issued to a bankrupt, claiming the value of such policy in accordance with the provisions of section 70a of the bankrupt law. It appeared that prior to the time of the bringing- of the action the bankrupt had died and that his widow, the beneficiary, who had possession of the policy, had presented the same and collected the insurance.</p> <p>The company had no notice of the bankruptcy and no claim to the policy or any part thereof was made by the plaintiff until a year after the death of the insured. The policy had a cash surrender value.</p> <p>The company was obliged by its contract to pay the proceeds to the beneficiary and, having, done so, the contract was performed. There could be no right in any one to demand the surrender value which was payable only on a contingency, which did not and could not arise, the policy having been surrendered on payment of the proceeds to the beneficiary entitled thereto. Under such circumstances the court properly entered judgment in favor of the defendant.</p>