The Calcutta Law Journal October & November 1912

Nos 6to 10 WHAT ARE THE RIGHTS or THE BANKRUPT’S TRUSTEE TO HIS LIFE INSURANCE POLICIES?* In the month of January 1912 in the District Court of the United States for the District of Massachusetts Dodge J. overruled the finding of referee Olmstead in the matter of Loveland which finding denied the petition of the bankrupt Loveland’s trustee that the bankrupt’s life insurance policy be turned [...] The bankrupts claimed the policies by virtue of an exemption law of the state of Washington while the trustee resisted this claim upon the ground that the policies had a cash surrender value of $ 2 200 which it was the duty of the bankrupts to pay the trustee as a condition precedent to the exemption of the policies. [...] The bankrupts were residents of the State of Washington and claimed the benefit of the broad exemption law of that state which provided that the proceeds or avails of all life insurance shall be !exempt from all liability for any debt." The Circuit Court of Appeals held that the allowance of state exemptions secured to the bankrupt by section 6 of the Bankruptcy Act was modified by the proviso [...] With the endowment policy the term of insurance may be limited from one to eighty-five years and a double contingency insured : (a) that the proceeds of the policy will be paid to the insured the insured if he is alive at the maturity of the endowment period and (h) that a beneficiary nominated by the insured shall receive the proceeds of the policy if the insured shall die before the policy ma [...] As before the trustee claimed that because of this power the policy was not expressed to be for the benifit of the wife of the insured within the meaning of the Missouri Statute.