Law Commons^™

The Limitation Of Taxation Of Transfers In Contemplation Of Death By The Revenue Act Of 1950, Edmund W. Pavenstedt

Michigan Law Review

The Revenue Act of 1950 amended the estate tax provision dealing with transfers in contemplation of death, which has been on the books ever since the estate tax first appeared as a war emergency measure during World War I, by eliminating from this category all transfers made more than three years prior to the date of death. All transfers made within that period are deemed under the new law to have been made in contemplation of death (and hence are includible in the transferor's gross estate) unless the contrary is shown. Such a rebuttable presumption formerly was limited by the …

Insurance-Construction Of Delivery-In-Good-Health Clauses In Life Insurance Policies [Farmers & Bankers Life Ins. Co. V. Baxley, Okla. 195o]

Washington and Lee Law Review

No abstract provided.

Book Reviews, William J. Bowa Reviewer, Emmett Conner (Reviewer), Charles K. Cosner (Reviewer), Charles E. Clark (Reviewer), Joseph Trachman (Reviewer)

Vanderbilt Law Review

Minimum Standards of Judicial Administration

Edited by Arthur T. Vanderbilt

Published by The Law Center of New York University for The National Conference of Judicial Councils, 1949. Pp. xxxii,752. $7.50

reviewer: William J. Bowa

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Availability for Work

By Ralph Altman

Cambridge: Harvard University Press, 1950. Pp. 350. $4.50

reviewer: Emmett Conner, Charles K. Cosner

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Forrester's Edition of Dobie and Ladd's Cases and Materials on Federal Jurisdiction and Procedure

By Ray Forrester

St. Paul: West Publishing Co., 1950, Pp. vii, 990. $8.50

reviewer: Charles E. Clark

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Life Insurance and Estate Tax Planning

By William J. Bowe

Nashville: Vanderbilt …

Insurance-Insurable Interest-Joint Adventurers, Alan P. Goldstein S. Ed.

Michigan Law Review

Plaintiff and the deceased were operating an airplane commercially. Plaintiff had purchased the plane, and was paying the deceased $25 per week plus half of the profits of the venture. The deceased acted as pilot, and was instrumental in obtaining business. Plaintiff took out insurance on the plane, and also on the life of the deceased, although their only relationship was through the joint venture. The plane was wrecked and the deceased was killed while on company business. The claim for the plane was paid, but the defendant refused to pay on the life insurance policy, claiming that the plaintiff …

Insurance-Effect Of Incontestable Clause In Suit For Reformation Of Policy, N. S. Peterman S. Ed.

Michigan Law Review

For over twenty years, defendant insurer accepted premiums on a life insurance policy issued to plaintiff. Defendant then discovered that a clerical error had been made in the original policy, as a result of which plaintiff's premium payments were approximately one-half the premiums defendant normally received for the type of policy actually issued. Defendant asked for reformation of the policy on the ground of mistake, and the trial court granted the relief sought. On appeal, held, reversed. The action was barred by the incontestable clause. Richardson v. Travelers Insurance Co., (App. 9th, 1948) 171 F. (2d) 699.

Life Insurance, The Forbidden Fruit, William J. Bowe

Vanderbilt Law Review

Until recently life insurance has represented the most impenetrable stronghold of the professional tax avoider and his advisors. As a vehicle for the transmission of wealth to future generations with minimum tax levies, it stood unrivaled. During a policyholder's life the value of his policy for gift tax purposes was and is measured by replacement cost.' Under applicable regulations during the thirties, when insurance was transferred by way of inter vivos gift the tremendous increase in value of the policy that came with death escaped gift tax, income tax, and estate tax. But since 1941 the situation has been reversed …

Insurance-Recovery For Death In Military Aviation Accident Under Policy With Aviation Clause But No War Clause

Washington and Lee Law Review

No abstract provided.

Insurance-Construction Of Policy-"Military Or Naval Service" Clause-"Aviation" Clause, Paul J. Keller, Jr., S.Ed.

Michigan Law Review

Plaintiffs, six minor children of deceased, were beneficiaries of a $20,000 life insurance policy issued to deceased while a member of the United States Army. Traveling under Army orders, the deceased procured a permit from the operations officer at an Army airfield in Puerto Rico for space on a regular Army transport route to another Army field in Puerto Rico. The plane crashed, killing all of its occupants. The policy issued to the deceased contained an "aviation" clause and a "military service" clause, under both of which the defendant insurance company rests its defense. Held: Deceased was a "fare-paying …

Death By Accidental Means

Indiana Law Journal

Notes and Comments: Insurance

Legal Liability For War Damage, John Hanna

Michigan Law Review

This article considers some of the rules for determining liability for economic loss in respect of war claims, especially as applied in connection with claims of life insurance companies for loss of premiums, of insurers of property for war risk insurance premiums, of property insurers for sums paid to foreign policyholders on war losses, and of owners seeking to recover for loss of expected profits. The rules discussed are broadly applicable to international claims in general.

Taxation - Federal Gift Tax - Integration With Income Tax, Katherine Kempfer

Michigan Law Review

Beck in 1935 created an irrevocable funded insurance trust of $172,000 in securities together with seven policies of insurance on his life. The income from the securities was to be applied to pay the premiums on the policies and any surplus was to be distributed to his wife and daughter. At grantor's death the proceeds of the policies were to be added to the corpus of the trust and all income was to go to the same beneficiaries for life with remainders over. There was no possibility of reverter in the grantor and no right to alter, modify or revoke …

Taxation Of Annuity Contracts Under Federal Income Tax, Robert Meisenholder

Michigan Law Review

A number of questions dealing with the taxability of commercial annuity policies under death tax statutes have received judicial consideration. By contrast, only a few questions dealing with the taxability of these contracts under income tax laws have been raised before the courts. But the income tax problems are equally important in terms of tax liability. Moreover, they will in the future assume an even larger significance in view of the large number of annuity contracts of various types which have been issued and are now being offered by insurance companies. Accordingly some explanation of these problems is warranted.

Federal Taxation Of Insurance Trusts, Allan F. Smith

Michigan Law Review

The life insurance trust may take many forms and serve a variety of purposes, but for present purposes it may be defined as a trust, at least part of the corpus of which is a policy of life insurance, in which the duty of the trustee is to receive the proceeds of such policy and administer such proceeds as a trust. Such a trust, like any other, may be revocable or irrevocable, and may be funded or unfunded. These various types will be considered separately only where the tax results vary with the type. The present objective is to survey …

Income Tax--Assignment Of Right To Renewal Commissions On Certain Life Insurance Policies--To Whom Taxable And When, Clarence Cornelius

Kentucky Law Journal

No abstract provided.

Insurance - Delay In Acting On Application - Tort Liability, William C. Wetherbee Jr.

Michigan Law Review

Appellant, administrator of the deceased's estate, sued the defendant for damages caused by its negligent failure to accept or reject deceased's application for life insurance within a reasonable time. A deposit had been made on the premium, and, but for the delay, the policy would have been approved and the deceased covered by it at the time of his death. The jury returned a verdict for the appellant, who appealed when the judge rendered judgment non obstante veredicto in favor of appellee. Held, that the insurance company was under no duty to accept or reject the application within a …

The Presumption Of Death From Absence As Affecting The Statute Of Limitations And The Nonpayment Of Premiums In Life Insurance Cases, Kenneth Cox

Washington Law Review

The doctrine that seven years' unexplained absence from home will raise a presumption that the missing person is dead has proved a troublesome one to apply in the insurance cases in which, modernly, it is chiefly called into play. As long as it is merely employed to establish the death of a missing spouse, in order to allow remarriage by the survivor, or in order to permit the distribution of the missing person's estate, or in many of the other situations where it is relied upon to establish the fact of death, the courts have little difficulty with the presumption. …

Insurance--Effect Of Delivery Of Life Insurance Policy To Agent, Jo M. Ferguson

Kentucky Law Journal

No abstract provided.

Life Insurance--Change Of Beneficiary In A Policy In Which Right To Make Such A Change Has Been Reserved To The Insured--Kentucky Rule, Jo M. Ferguson

Kentucky Law Journal

No abstract provided.

Insurance - Supervision By The State - What Constitutes The Insurance Business, Thomas E. Wilson

Michigan Law Review

Plaintiff, a corporation, advertised that any person who bought goods from certain selected stores would be entitled to receive coupons, and when his coupons amounted to a certain sum he would be entitled to certain death and security benefits up to specified amounts. Plaintiff brought suit against the Insurance Commissioner of Pennsylvania to enjoin him from interfering with the plaintiff's business. Held, that the plaintiff was carrying on an insurance business and was subject to supervision by the Insurance Commissioner. Hunt v. Public Mutual Benefit Foundation, (C. C. A. 3d, 1938) 94 F. (2d) 749, certiorari denied (U. …

Life Insurance Proceeds As Community Property, Russell V. Hokanson

Washington Law Review

The past year has witnessed the closing by judicial decision of two important gaps in the Washington community property law, both relating to life insurance proceeds. The first case in point of time, Occidental Life Insurance Company v. Powers, announced the rule that where the husband changes the beneficiary of a life insurance policy which is the property of the community because issued on the life of the husband during marriage and paid for with community funds, without the consent or knowledge of the wife, the former beneficiary, the attempted gift by the husband is ineffective and the wife may …

Bankruptcy-Disposition Of Insurance Policy Assigned To Beneficiary

Michigan Law Review

Mrs. Humphrey was the beneficiary in an insurance policy taken out by her husband on his own life. He assigned this policy to her at a time when it was pledged to the insurance company for loans slightly in excess of the cash surrender value. Mr. Humphrey died after Mrs. Humphrey had filed her voluntary petition in bankruptcy. Held, the policy is not an asset of the bankrupt estate, but belongs to Mrs. Humphrey rather than the trustee. Curtis v. Humphrey, (C. C. A. 5th, 1935) 78 F. (2d) 73.

Contracts --Anticipatory Breach- Denial Of Liability As A Repudiation

Michigan Law Review

A life insurance policy provided that the insured was to be paid a certain sum per month in case of permanent disability. A dispute arose between the company and the insured as to the proper construction of the contract. The company expressed willingness to perform the contract as it construed it, but this was a refusal to pay the monthly disability income. The insured brought an action to recover total damages for anticipatory breach, of the contract to pay the permanent disability benefits. Held, that the insurer had not made such an unequivocal refusal to perform the contract as …

Insurance - Failure To Act Promptly On Application - Tort Liability Of Insurer

Michigan Law Review

Although mere delay in passing upon an application for insurance cannot, as a rule, be construed as an acceptance of the offer for a contract of insurance, in recent years some courts have held insurance companies liable in tort where there has been delay in acting upon the policy and the loss sought to be insured against has occurred in the meantime. Plaintiff, to sustain a cause of action in tort, must prove negligence on the part of the insurer, or its agents, and that the policy would have been issued to the applicant but for the negligence. The suit …

Taxation -Income From Irrevocable Funded Insurance Trusts - Constitutionality Of Statute

Michigan Law Review

The settlor created irrevocable trusts to pay premiums on policies of insurance issued on his life in favor of irrevocably-named beneficiaries. Held, that sec. 219 (h), Rev. Acts 1924, 1926, making income from trusts taxable to the settlor, is constitutional. Burnet v. Wells, (U. S. 1933) 53 Sup. Ct. 7.61.1

Insurance - Death In Violation Of Law-Proximate Cause

Michigan Law Review

Decedent's life was insured by the defendant company, a clause in the by-laws of which, incorporated in the policy by reference, excepted liability where death occurred in consequence of a violation of law. Decedent and two companions had committed the crime of auto banditry, and police officers, with warrants for their arrest, surprised them in possession of the stolen car, killing the decedent who sat armed with a rifle in the rear seat as the car drove away. Held, the policy covered the death of the insured, including additional payment for accidental death. Ben Hur Life Association v. Cox …

Insurance - Civil Death Of Insured As Effecting Acceleration Of Endowment Policy

Michigan Law Review

An endowment policy was made payable to insured if he should live to the policy anniversary date next preceding his sixtieth birthday, otherwise to his executors or administrators. Four years after the policy was taken out, insured was sentenced to life imprisonment for killing his wife. A statute provided that the estate of a person incarcerated for life "shall be administered upon and distributed, and his contracts and relations to persons and things are affected, in all respects, as if he were dead." In an action on the policy by the administrator of insured, held, that imprisonment of insured …

The Money Value Of A Man

Michigan Law Review

A Review of THE MONEY VALUE OF A MAN By Louis I. Dublin and Alfred J. Lotka.

Status Of The Proceeds Of Life Insurance Under The Community Property System, Fred W. Catlett

Washington Law Review

The vast and increasing amount of money invested in policies of life insurance in the states having a community property system makes the status of the proceeds of such policies under that system of very general interest, and renders it highly desirable and important that the laws as to such contracts should be worked out with dispatch, definiteness and certainty The fact that there are in the community property states different theories as to the character and extent of the wife's interest and different statutes affecting the determination of the rights of the spouses has led to somewhat varying results. …