Levy v. Taylor

Citations

• 66 Tex. 652
• 1 S.W. 900
• 1886 Tex. LEXIS 589

Syllabus

<p>1. Insurance—Benefit certificate—Security to Creditor—W. secured a benefit-certificate, in favor of his wife, from the “Ancient Order of United Workmen,” and upon his failure to pay the required assessments, the right to receive under it was suspended. The certificate was renewed in the name of L., “ creditor,” who paid the past and future assessments and charged them to the account of W. L. afterward came into possession of additional claims against W., and on his. death sought to subject the money received under the certificate to the payment of all the claims. Held:</p> <p>(1) The nenewal of the certificate was evidently intended solely to give L. a security for the debt then existing, and for such sums as he should have to pay in the way of assessments, and L. understood that the sums paid on assessments were simply loans to W.</p> <p>(2) Therefore W’s representatives were entitled to the surplus after payment of the original debt and sums advanced to pay assessments. But if L. had secured and kept up the certificate with his own funds, W’s representatives would have had no claim. (Bliss on Ins., 326.)</p> <p>(3) L’s subsequently acquired claims, not having been in contemplation of the parties when the certificate was renewed, he had no power to secure their payment out of the money derived from it.</p>