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Lecture II. Policies of Insurance as Securities and in Trust
Published online by Cambridge University Press: 22 April 2013
Extract
There are various ways in which life policies may be made available as securities. An existing policy upon the debtor's life and in the debtor's name may be assigned to the creditor, or a policy may be taken out in the creditor's name, in which case no assignment is necessary. Unless, however, the policy has already acquired a value, the security is defective if there is no additional security for the payment of the premiums by the debtor. Consequently, policies are. most frequently used as supplementary to other securities. For example, an annuity upon the debtor's life, or on some other life, is assigned to the creditor, of sufficient amount to cover the interest on the loan and the premiums upon a policy upon the annuitant's life. The policy secures the repayment of the principal sum when the annuity lapses. In the same way, a reversionary interest may be assigned along with a policy upon the life on whose survivance the reversion depends. In the latter case it is not unusual to burden the reversion not only with the principal, but with the whole or a part of the interest and premiums upon the policy. If this is done, there seems no reason, as I stated in my last lecture, why the policies should not cover the interest and premiums for which credit is given as well as the principal.
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- Lectures on Insurance Law
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- Copyright © Institute and Faculty of Actuaries 1896
References
page 290 note a 16 Shaw 1277.
page 290 note b 16 Rettie 112.
page 290 note c See also The Scottish Provident Inst. v. Robinson and Newett, 1892, 29 S.L.R. 733.
page 291 note a Policies of Assurance Act, 1867 [30 and 31 Vict, c. 144], s. 1.
page 291 note b 44 and 45 Vict. c. 41, s. 22; Bell, 's Lectures on Conveyancing, vol. i. 331.Google Scholar
page 291 note c Tench v. Eykyn, 18 L.R. (Ireland) 45.
page 291 note d 44 and 45 Vict. c. 41, s. 36.
page 291 note e 30 and 31 Vict. c. 97, s. 2.
page 291 note f Section 19.
page 291 note e Section 3.
page 292 note a 4 Ch. D. 421.
page 292 note b 15 Ch. D. 169.
page 293 note a 30 and 31 Vict. C. 144, s. 3.
page 293 note b 25 and 26 Vict. c. 85, s. 2.
page 294 note a In re Young, 25 L. R. (Ireland), 372, 386.
page 294 note b In re Haycock's Policy, 1 Ch. D. 611.
page 294 note c Newman v. Newman, 28 Ch. D. 674, 680.
page 295 note a Bankruptcy Act 1856; 19 and 20 Vict. c. 79, s. 102.
page 295 note b Sowerby v. Brooks, 4 B. & Ald. 523; In re Atkinson, 2 De. G. M. & G. 140; In re Barr's Trusts, 4 K. and J. 219; Palmer v. Locke, 18 Ch. D. 381 per Jessel M. R. The decision in In re Bright's Settlement, 13 Ch. D. 413 deals with the vesting clauses of the Act of 1849, which are different from those of the present English Bankruptcy Act, 1883 (46 and 47 Vict. c. 52, ss. 20, 43, 44, 54).
page 296 note a 51 Vict. c. 8, ss. 19 and 20.
page 297 note a 1851; 13 Dunlop 718.
page 297 note b Stevenson v. Cotton, 1846, 8 Dunlop 872, 880; Bruce v. Garden, L. R. 5 Ch. 32.
page 298 note a Marquess of Queensberry v. Scottish Union Ins. Co., 1839 1 Dunlop 1203; Shand v. Blaikie, 21 Dunlop 878.
page 298 note b Knox v. Turner, L. R. 5 Ch. 515; Preston v. Neele, L. R. 12 Ch. D. 760, 769.
page 299 note a Cf. Shand v. Blaikie, supra.
page 299 note b Cf. Knox v. Turner, supra.
page 299 note c Salt v. The Marquess of Northampton, L. R. [1892], A. C. 1. The same principle is recognised in Scotland. Morison's Dictionary, voce ‘Trritancy’; Thomson v. Threshie, 6 Dunlop 1106; Smith v. Smith, 6 Rettie 794.
page 300 note a Cf. Knox v. Turner, L. R. 5 Ch. 515.
page 300 note b Borthwick v. Scottish Widows' Fund Society, 1864; 2 Macpherson 595.
page 301 note a 2 Macpherson, p. 605.
page 301 note b Jarvies' Trustees v. Jarvies' Trustees, 1887; 14 Rettie 411.
page 301 note c Cleaver v. Mut. Reserve Fund Life Association, L. R. [1892]; 1 Q. B. 147, 154.
page 303 note a Seyton v. Satterthwaite, 34 Ch. D. 511.
page 303 note b Jarvies' Trustees v. Jarvies' Trustees 1887; 14 Rettie 411, 416.
page 304 note a Schumann v. Scottish Widows' Fund Society, 13 Rettie 678.
page 305 note a Schultze v. Schultze, 56 L. J. Ch. 356.
page 305 note b In re Leslie, 23 Ch. D. 552; Falcke v. Scottish Imperial Co., 34 Ch. D. 234. Borthwick v. Scottish Widows' Fund, 2 Macpherson 595.