O'Donnell v. Metropolitan Life Insurance

Citations

• 11 Del. Ch. 4
• 95 A. 289
• 1915 Del. Ch. LEXIS 34

Syllabus

<p>Where an insurance company was served with process in a suit brought against it for the amount due under a policy, and paid such amount to another claimant, the company cannot have the bill dismissed on the ground of payment, and leave complainant to bring a supplemental bill against the person receiving the payment or the policy.</p> <p>The failure of an insured to surrender a policy at the time of requesting a change of beneficiary, as required by the insurance contract, does not prevent the new beneficiary from recovering, as equitable assignee, money which has been paid to the administrator of the first beneficiary, where the company has nevertheless obtained possession of the policy.</p> <p>If the right to change the beneficiary is not given by the policy or by statute, the beneficiary named takes a vested interest in the policy.</p> <p>Where a life insurance policy provides that the beneficiary may be changed by written notice to the company at its home office, accompanied by the policy, to take effect on the indorsement of the same on the policy by the company, no change of beneficiary can be made effective until such conditions have been complied with; the approval of the change being not merely a formal ministerial act.</p> <p>Where the administrator of the beneficiary under a life insurance policy has prevented the insured from changing the beneficiary, and has received the amount due under the policy which would otherwise have been given to the beneficiary last named, such beneficiary has a cause of action against the administrator, since the latter cannot take advantage of his own wrong.</p>