Walzer v. Walzer

Breitel, J. (dissenting).

In this action the designated beneficiaries of three assigned life insurance policies seek reimbursement from the estate of the insured for the amount of the bank loan collected out of the policies. Sometime after the loan had been made, the beneficiaries were designated as such, but expressly subject to the security assignment in favor of the bank.1 The issue is whether the designated beneficiaries are subrogated to the right of the creditor bank and entitled to be reimbursed for the amount of the loan from the estate.

The question arises on the granting of a motion…