Pearsall v. . Bloodworth

Is the change of beneficiary from his estate to his wife, made by an insolvent husband, in an ordinary policy of life insurance providing for a change of beneficiary at the option of the insured, valid and effectual against creditors of such insolvent?

The question of the validity of the assignment of a policy of life insurance when the insured is insolvent was considered by this Court in Burton v. Farinholt, 86 N. C., 260. The Court held that a life insurance policy was a chose in action and became an integral part of the estate of the insolvent immediately upon the delivery of the policy,…