Harjo v. Fox, 193 Okla. 672

Summary

The Oklahoma Supreme Court considered whether the Secretary of the Interior’s consent was required to change beneficiaries under a life insurance policy funded with restricted Indian funds. The court held that the attempted beneficiary change was ineffective because the Secretary’s discretionary consent was not given before the insured’s death. The judgment awarding the proceeds to the original beneficiaries was affirmed.

Holdings

1. Mina Harjo and Mary Fox, not the Secretary of the Interior, were the beneficiaries within the meaning of the policy. Because the policy required the Secretary's consent to a change of beneficiary, Mary Fox could not be eliminated without that consent.
2. The Secretary could not give effective consent after the insured's death because the required consent involved the exercise of discretion and had not been given during the insured's lifetime.
3. The insurer could not waive the policy provision requiring consent to a beneficiary change so as to destroy the vested rights of a third-party beneficiary after the insured's death.

Questions Presented

1. Whether Mina Harjo and Mary Fox were the beneficiaries under the policy, rather than merely cestuis que trustent of the Secretary of the Interior, such that Mary Fox could be eliminated only with the Secretary's consent.
2. Whether the Secretary of the Interior could validly consent to the change of beneficiaries after the insured's death when the consent required the exercise of discretion.
3. Whether the policy provisions requiring consent to a change of beneficiary were solely for the insurer's benefit and were waived when the insurer paid the proceeds after the insured's death.

Disposition

affirmed