United States v. Penn Mut. Life Insurance

KIRKPATRICK, District Judge.

This is an action by the United States to-recover a penalty from the defendant Insurance Company, under 26 U.S.C.A. Int. Rev.Code, § 3710, on the theory that the defendant is in possession of a property right of the delinquent taxpayer and has failed to surrender it after demand. The defendant insured the taxpayer’s life by a policy providing for certain specified cash surrender values. The beneficiaries are the son and daughter of the insured, but he has the right to change the beneficiaries without their consent. The cash value is payable only upon surrender of…