Norwood v. Guerdon

Citations

• 60 Ill. 253

Syllabus

<p>1. Lite insurance policy — assignment by wife. Where a person insured his life for the benefit of his wife, and she endorsed her name on the policy in blank, and the husband procured a loan of money and pledged the policy as collateral security, and afterwards paid the agent of the company the larger portion of the premium, and the creditor holding the policy haring called on the agent to learn whether the premium had been paid, .and being informed by the agent that the greater part had, and the'balance would be paid in a few days; the time for its payment was permitted to pass, and the agent declared a forfeiture, and a new policy was issued to the wife in her name, for the same amount, on the same terms, and in other respects similar to the first, and the sum paid towards the premium oil the first policy was applied to the premium on the new policy; and the person whose life was insured having died, the creditor claimed that lie was entitled to payment out of the funds: Held, that the declaring the forfeiture and tlie issuing Of the new policy did not.affect the rights of the creditor, and that his lien attached to the fund under the new policy as beheld it under the first. .</p> <p>3. The new policy was, in substance, though different in form, a mere renewal of tlie old. It was a renewal evidenced by the policy instead of a receipt, and the creditor should be allowed the same interest he would have had in the old if the same money had been applied in procuring the ordinary renewal.</p> <p>3. Assignment by wife — its effect. The wife having placed her name .on the back of the policy at.the request of her husband, and delivered it to him, she thus enabled him to procure the loan of money, and it would be opening a door to fraud to permit the wife to deny the power of the husband to fill up the assignment. Such an assignment by the wife must be held valid and binding in equity. By signing her name in blank, she gave the public the evidence of her consent — an act