Supreme Council of Catholic Knights of America v. Franke

Citations

• 137 Ill. 118
• 27 N.E. 86
• 1891 Ill. LEXIS 1023

Syllabus

<p>1. Life insurance—mutual benefit association—changing the beneficiary—vested rights. In an ordinary insurance policy, when a person insures Ms life for the benefit of another, and the policy does not provide for a change of the beneficiary, it may be that no valid change can be made without the consent of the beneficiary; but that doctrine has no application to a certificate issued by a mutual benefit society, when the contract, in express terms, authorizes a change of the beneficiary upon the application of the insured.</p> <p>2. A mutual benefit association has the power to amend its constitution, at any time, in respect to a change of beneficiaries in certificates of membership, and such amendment may embrace certificates issued before such change, where no vested rights have been acquired by beneficiaries, as, when the original contract is between the assured and the insurer, and the former retains control of his certificate and has made all the payments of assessments.</p> <p>3. Whether a beneficiary in a certificate of membership in a mutual benefit association acquires a vested interest in the sum of money to be paid on the member’s death, must be determined by the terms and conditions of the contract entered into between the association and the insured, as shown by the certificate and the constitution of the association.</p> <p>4. Where the contract of insurance of the life of a party is made and entered into between the assured and the association of which he is a member, and the certificate issued to him expressly provides that it is a contract between the association and the assured alone, and not a contract with the beneficiary therein named, it follows that the two contracting parties may make such change therein after the execution of the contract as they may agree upon, and the contract may be canceled and a new one issued, payable to a different beneficiary.</p> <p>5. Where a certificate of membership in a mutual benefit association expressly prov