Summary
The Seventh Circuit held that an insured substantially complied with the terms of a life insurance policy by executing a beneficiary-change form and taking affirmative steps to change the beneficiary, even though he did not deliver the form to his employer before his death. Applying Illinois law, the court reversed summary judgment for the insured's wife and directed that the policy proceeds be paid to his daughter.
Holdings
- Under Illinois law, an insured substantially complies with a policy's beneficiary-change requirements when he takes positive steps clearly evidencing his intent to change the beneficiary and the only omitted step is delivery of the properly executed form, even absent strict compliance with the policy's delivery requirement. Balsley therefore effectively changed the beneficiary from Mary Ann Balsley to Hazel Jean Gulley.
Questions Presented
- Whether an insured effectively changes the beneficiary of a life-insurance policy under Illinois law when he properly executes the required beneficiary-change form but dies before delivering it to the employer or directing another person to deliver it.
Disposition
reversed
Cases Cited (7)
- Prudential Insurance Co. of America v. Moore, 145 F.2d 580 (7th Cir. 1944), cert. denied, 324 U.S. 849, 65 S. Ct. 686, 89 L. Ed. 1409 (1945)(followed)
- Continental Assurance Co. v. Platke, 295 F.2d 571 (7th Cir. 1961)(followed)
- John Hancock Mutual Life Insurance Co. v. Douglass, 156 F.2d 367 (7th Cir. 1946)(followed)
- Logan v. State Farm Life Insurance Co., 61 Ill. App. 3d 770, 18 Ill. Dec. 931, 378 N.E.2d 395 (3d Dist. 1978)(consistent)
- Tatelman v. Tatelman, 25 Ill. App. 3d 678, 323 N.E.2d 821 (1st Dist. 1975)(consistent)
- Williams v. Teachers Insurance and Annuity Ass'n, 15 Ill. App. 3d 542, 304 N.E.2d 656 (1st Dist. 1973)(consistent)
- Donahey v. Sweigart, 336 Ill. App. 366, 84 N.E.2d 170 (4th Dist. 1949)(followed)
Cited In (0)
No citing cases on record yet.
Court Document
Open PDFLoading document…