Phillips' Estate

Citations

• 238 Pa. 423
• 86 A. 289
• 1913 Pa. LEXIS 987

Syllabus

<p>Insurance — Life insurance — Assignment of policy — Insurable interest — Brother and sister — Decedent’s estate.</p> <p>1. Brothers and sisters have an insurable interest in each other’s lives.</p> <p>2. If an insurance policy is valid at the time when it is made, it does not become invalid thereafter because it is assigned to one who may not have an insurable interest, provided it was taken out in good faith.</p> <p>3. Upon the audit of the account of an executor it appeared that the accountant held a sum of money which had been paid to the estate upon a policy of insurance upon the life of the decedent’s brother, which policy had been taken out by the brother, who was unmarried and without children, payable to the decedent. It further appeared that about a year later the brother stated to the agent of the company that he was unable to pay the premiums; that he wanted his sister to get the money from the policy, and that she was willing to pay all future premiums; and thereupon he executed an absolute assignment of all his right, title and interest in the policy to the decedent, who subsequently paid all premiums. The decedent predeceased her brother, leaving a will disposing of her estate. Her brother subsequently died and the amount of the policy was paid by the company to the executor of the sister. The fund was thereupon claimed by the administrator of the deceased brother, upon the contention that the assignment was in reality intended only as collateral security for money advanced in payment of premiums. Held, there was nothing in the evidence to indicate that the assignment was merely as collateral security; that the transaction was in good faith; and that the fund was properly held as part of the sister’s estate.</p>