Wilson v. Prudential Insurance Co. of America

Opinion by

Baldrige, J.,

The question involved in this appeal is whether the holder of a life insurance policy under an assignment by the insured and the sole beneficiary may recover after default of the debtor the surrender value of the policy from the insurer, where the insured could have borrowed on the policy more than enough to pay the debt.

On March 31, 1920, Ralph M. Peterman, the insured, borrowed $400 from Mrs. S. 0. Wilson, evidenced by a judgment note, payable one year from date, with interest. Peterman and his wife, the sole beneficiary, assigned to Mrs. Wilson “as interest may…