Splawn v. Chew

Citations

• 60 Tex. 532
• 1883 Tex. LEXIS 372

Syllabus

<p>1. Insurance.— In ordinary life insurance policies, the beneficiaries named have vested in them irrevocably all interest in the policy. Following Ricker v. Charter Oak Ins. Co., 27 Minn., 193, and other authorities. When, however, the person procuring the policy enters into some agreement as to what control the insured is to exercise over the policy (a matter permissible in all contracts), no indefeasible interest in such case would be vested in the beneficiaries.</p> <p>2. Same—Benefit fund.—An association which, by reason of payments made by parties in the order before being received into membership, provides a fund from which a certain sum of money is to be paid to a deceased member who has complied with all its legal requirements, is, so far as such provisions are concerned, a mutual life insurance company. Every member is charged with a knowledge of the rules and by-laws of such association, bound by them, and entitled to the rights and privileges conferred by them.</p> <p>3. Same —Disposition of insurance money.—Where a section in the by-laws of such association reads: “Applicants shall enter upon their application the name or names of the members of their family dependent upon them, to whom they desire their benefit paid, and the same shall be entered in the benefit certificate (issued instead of a policy) by the supreme secretary, subject to such future disposal among their dependents as they themselves direct,” such section vests the control of the certificate, so far as the selection of its beneficiaries is concerned, in the member insured. A clause or by-law of an insurance or other corporation, pointing out a way in which the right to dispose of the insurance money may he exercised, or relating to some other rights, merely directory in its character, and whose object is to protect the corporation, cannot be taken advantage of by outside parties claiming the insurance or other right under the charter of such corporation. Such provisions are for the pro