New York Finance Co. v. United Security Life Insurance & Trust Co.

Citations

• 218 Pa. 47
• 66 A. 984
• 1907 Pa. LEXIS 452

Syllabus

<p>Insurance — Life insurance — Endowment policy — Reinsurance.</p> <p>A life insurance company issued endowment insurance under a plan by which the insured received at once the face value of the policy, and gave to the insurance company security for the payment of ordinary life insurance premiums and interest on the moneys received. At the end of the endowment period, or the death of the insured, the latter, or his legal representatives, retained the money received, and the insurance company surrendered the security given. An applicant for such insurance was at first refused, because he was a sub-standard risk. Subsequently a policy was issued to him, and to secure the monthly payments of premiums and interest he gave his bond, and assigned a life estate which he owned. In accordance with an agreement to do so he also assigned absolutely and without conditions a life policy in another company. Held, that the policy in the other company was reinsurance, assigned as security against the sub-standard risk, and that upon the death of the insured the proceeds of the policy belonged to the company rather than to a later assignee. ■</p>