Light v. Lauser

Citations

• 174 Pa. 608
• 34 A. 350
• 1896 Pa. LEXIS 933

Syllabus

<p>Insurance — Life insurance — Insurable interest — Assignment of policy —Contract.</p> <p>Two policies of insurance, one for'$1,000 and the other for $2,000 were made payable to B., the son of the assured. B. assigned both policies to L., under an agreement that at maturity of the policies $500 of the amount realized from the smaller, and $1,000 of the amount realized from the larger policy should be paid to B., and that in the event of the failure of L. to pay all charges and assessments as they became due, the assignment should become void, and that all benefits to arise from the policies should revert to the assignor. Subsequently B. assigned his right to the money to be received by him under these assignments-together with his remaining interests in the policies to K. L. paid assessments amounting to $2,813.40, and the total amount due on both policies at the death of the insured was $2,774.50. Neither of the assignees, at the time of the assignments to them, had any insurable interest in the life of the insured. The amount of $2,774.50 was paid into court by the insurance company, and an issue framed between the assignees of the policies to determine their rights to the fund. L. was allowed to withdraw $1,274.50, being the amount in excess of $1,500 reserved in the assignment by B. Held, (1) that L. was not entitled to anything in excess of the amount which he had been allowed to withdraw from court; (2) that by his agreement he limited the amount which he was to receive to the balance remaining after the payment of the $1,500; (3) that aside from the assignment L.’s right to receive anything was-based upon the equity that he should have restored to him what he paid to keep the policies alive, and that this equity did not arise from the fact of payment alone, but from the fact that payment was made in discharge of a duty or obligation under his agreement; (4) that he could not, to free himself from his agreement, assert that it was against public policy and s