CASES (GIVE REASONS FOR YOUR ANSWERS) 1. C was engaged to be married to R. C took out a policy of insurance on R's life made payable to her as his intended wife. The first premium was paid by her and while the policy was in full force, but before the contemplated marriage was solemnized R died. The company defended a suit on the policy on the ground that C did not have an insurable interest on R's life. Can C recover on the policy? 2. L owed C $70.00 which he was unable to pay. At C's suggestion L insured his life for $3,000.00, C paying the first premium and agreeing to pay the other. L then assigned the policy to C. L died seven months later and C collected the $3,000.00. The administratrix of L then sued C for the amount of the insurance over and above the amount that was due C cn his death on the ground that as far as C was concerned the insurance was a mere wager. Can she recover? 3. An uncle insured his nephew's life. Upon the nephew's death the company resisted the payment of the policy on the ground that the uncle had no insurable interest on the nephew's life. Can the uncle recover? 4. WM and J M were partners and conducted the store under the name of M & Company. CM made an agreement with W M that W M should go to California and work in the mines there for one year, end that onefourth of his earnings should belong to C M and that as a consideration therefor, CM should work in the store during W M's absence. To this arrangement the other partner consented. Before W M left for California CM took out a life insurance policy on W M's life for $1,000.00. W M died in California before the expiration of the year. The insurance company defended payment on the policy on the ground that C M had no insurable interest on W M's life. Is this a good defense? 5. C took out a life insurance policy in favor of M who was his sisterin-law. C paid the premium himself and on his death the insurance company refused payment on the policy on the ground that M had no insurable interest in C's life. Is this a good defense? 6. C took out an insurance policy and in the application stated that he had never been afflicted with a certain disease, when as a matter of fact he had been ill with this disease twice before the policy was issued. The company defended a suit on the policy on the ground that C's statement was a warranty and being untrue the policy was void. Is this a good defense? 7. R took out a life insurance policy on the life of his son Charles and answered "No" to the question, “Have you ever been refused an insurance by any other company?" As a matter of fact he had been re fused insurance by two other companies within three weeks. Would such a statement render a policy void? 8. C applied to an insurance company for a policy of insurance. C was unknown to the agent of the company and was a man who appeared to be in good health. The agent did not ask him any questions concerning his habits of life. As a matter of fact C was very badly addicted to the use of strong drink. The company sought to avoid the policy on the ground that C had withheld a material fact. Should the policy be avoided on this account? 9. F in an application for insurance stated that he was thirty years of age. As a matter of fact he was thirty-five years of age. The policy contained a provision that if the answers made by the applicant were untrue the policy would be null and void. Is the company liable on the policy? 10. A owed B $300.00 which he was unable to pay. To secure the payment of the debt B took out a life insurance policy on A's life for $500.00. Two years later A paid B the full amount of the debt. Two years after the payment of the debt A died. B had kept up the premium of the policy. The company defended a suit on the policy on the ground that B had no interest in A's life at the time of A's death. Is this a good defense? CHAPTER L WILLS 563. Definitions. A will is the solemn disposition of one's property to take effect upon his death. The person making a will is called the testator when a man, and a testatrix when a woman. One who dies leaving a will is said to die testate, if he dies without making a will he is said to die intestate. A legatee or devisee is the person to whom a legacy or devise is given. The words commonly used in a will are "I give, devise, and bequeath." The word devise is appropriately used when the gift is real property, and bequeath when the gift is personal property. These are nice distinctions, but they mark exact language and it is best to use them. 564. Kinds of wills. There are two kinds of wills. (1) Written, (2) Unwritten. An unwritten will is called a nuncupative will. A nuncupative will is valid only where the testator was overtaken by sudden illness and had no time to make a written will. They are confined to personal property, usually limited in amount, and are most frequent in the case of soldiers in actual service or sailors at sea. The most common form of will is in writing and may be written by the testator himself or by some one for him, if it is duly signed by the testator. 565. Distinction between a will and gift. A will is not intended to take effect until the death of the testator and no title of any kind will vest in the beneficiary until that time, and the will is subject to revocation at any time before the testator's death. A gift takes effect at once. Gifts are of two kinds: (1) gifts between living persons, (2) gifts made in contemplation of death. To make either kind of gift valid a present title must vest at once. A beneficiary is the person entitled to the income or enjoyment of property the title to which is held by another as trustee. In life insurance it is the person to whom the policy is made. payable. In a will it is the person mentioned as an heir. 566. What property may be disposed of by will. All property, both personal and real, to which the owner may be entitled at the time of his death may be disposed of by will, subject to certain statutory restrictions. The most common restrictions are as follows: 1. The expenses of administration and allowances for the support of the widow and minor children during the settlement of the estate are usually made a first charge on the testator's property. 2. The widow is entitled to dower in the testator's real property and this will be preserved to her unless other provision is made for her in the will. In most states she can elect to take her dower or take under the will, but she can not take both. 3. The homestead interest of the widow and minor children can not be cut off by will. 4. The right of creditors to have their claims paid out of the estate can not be defeated by will. 5. Children not provided for in the will will usually take as heirs unless it appears that their omission was intentional. Subject to the above restrictions a competent testator may dispose of his property as he chooses. He may select such of his children or his relatives as he desires for his beneficiaries, or he may leave his property to a stranger. 567. Who may make a will. Rule: Any person of required age, and who is of sound mind and under no constraint may make a will by complying with the formalities required by law, as a general rule. In a majority of the states the age of twenty-one years is required to make a will, but in a number of states a female can make a will at eighteen. In order to make a valid will the testator must be of sound mind. It has been held that a person might be capable of making a will when he would not be capable of making a contract or a deed. This is for the reason that in making a contract or a deed the party has some one to contend with, who is anxious to make as good a contract as possible, but in making a will the party is alone and is not obliged to contend with any one. Mere weakness of mind or loss of memory does not incapacitate one to make a will unless they are sufficient to deprive the testator of what is understood as a sound mind. 568. Who may take by will. As a general rule any persons may take by will, including infants, married women, insane persons. A corporation may take by will such property as it is allowed to hold. By statute in many of the states a subscribing witness is not allowed to take under a will, unless there are a sufficient number of subscribing witnesses without the signature of the one to whom the gift was made. 569. Formalities required in making a will. This subject is regulated by statute, but most of the states require that the will should be in writing, signed by the testator, and the execution of the will attested by two or more competent witnesses. This, of course, does not include nuncupative wills. 570. Requirement of writing. Where a statute requires a will to be in writing, it may consist of a blank form on which part of the terms are printed and then filled in in writing or it may be written on a typewriter, or written and signed in pencil. If the will is written on several sheets of paper it is not necessary that each sheet should be signed. A will may be written in any language, if the testator understands the language used, or it is translated to him so that he understands the contents of the will. 571. Signing of the will. Rule: The statutes require that a will should be signed by the testator. The usual method is for the testator to sign with his own hand and sign his name in full. He may, however, merely make his mark or sign his initials, just so he shows an intention of authenticating the instrument. Unless the statute requires the instrument to be signed at the end or the foot, the signature |