Aetna Life Insurance v. Sterling

Deceased was the holder of a certificate in the sum of $5,000 of a group insurance policy, as an employee of Shearson, Hammill & Company. Her daughters, the defendants Sterling, were the beneficiaries. Upon leaving her position, deceased was notified by the insurer that her participation in the group policy would expire May 1, 1960, but that she had the option to replace the participation with an individual life policy in the sum of $2,000. She made an application for such a policy, paid the first premium and named her mother, the defendant Greenberg, as beneficiary of this new policy. She…