Keckley v. Coshocton Glass Co.

Citations

• 86 Ohio St. (N.S.) 213

Syllabus

<p>Life insurance policy — Not merely a contract of indemnity — Stockholder insured for benefit of corporation — Corporation has an insurable interest, when — Legal representatives of insured estopped from denying insurable interest, when — Insurer pays money into court — Claimants cannot deny insurable interest— Insured may assign instirance — Sections 9393^9396, General Code.</p> <p>1. A life insurance policy is not -merely a contract of indemnity. It is a contract to pay to the beneficiary a sum certain in the event of death; and if the contract was valid in its inception and so continues until its maturity, the beneficiary is entitled to the whole of the stipulated sum.</p> <p>2. Where a person is the owner of a large portion of the stock of a corporation, and by, reason of his skill and experience he is largely relied upon to make the business of the corporation a success, and when, in borrowing money of banks and in dealing with creditors, and in inducing other persons to buy stock in such corporation, he represents that he has insured his life for the benefit of the corporation and that the policies therefor are assets of the corporation, such facts disclose an insurable interest in the corporation; and such insured person and his legal representatives are estopped from claiming that such policies are not based upon an insurable interest, or that the amounts due thereon do not belong to the corporation.</p> <p>3. Where a life insurance company makes no defense and pays the amount of its policy into court to -abide the judgment of the court as between conflicting claimants,- parties claiming an interest in the fund will not be allowed to object that the beneficiary named in the policy had no insurable interest.</p> <p>4. One who has obtained a valid insurance upon his life, may dispose of it as he sees fit, in the absence of prohibitory legislation or contract stipulations. It is immaterial, in such case, that the assignee has no insurable interest. Eckel v. R