New York Life Insurance v. Bank of Italy

This action is one to determine conflicting claims to the benefits of a life insurance policy. The facts giving rise to the controversy are as follows:

On the eleventh day of July, 1905, the plaintiff, New York Life Insurance Company, issued a twenty-year tontine endowment policy on the life of one Charles J. Newman. By its terms the policy was made payable to the estate of the insured, but it expressly provided that the beneficiary named therein might be changed upon application to the company. Accordingly, in the year 1907, this privilege was exercised by Newman, and Hattie Vogel, his sister, was substituted as beneficiary. Bight years later a change was again made, the beneficiary substituted on this occasion being one Jennie Lehman, who thereafter died. After her death, on •September 24, 1920, the insured designated his brother Layo Newman as beneficiary, and shortly thereafter died, to wit, on December 11, 1920. One of the privileges provided for under the policy permitted loans to be had thereon, and the insured exercised this privilege on October 4, 1920, by borrowing the sum of $7,300 upon its security.

At the date the policy was issued the insured and the defendant Ella…