North American Life Ass. Co. v. Craigen

North American Life Ass. Co. v. Craigen

The policy was valid because it was a bona fide contract effected by the insured who had an insurable interest in his own life, the statute 14 Geo. III c.48 does not render such a policy void merely because the named beneficiary lacked interest, and s.2 does not apply to policies taken out by a person on his own...

Source-derived case information.

Citation
(1886) 13 SCR 278
Parties
Appellant/plaintiff: North American Life Assurance Company; Respondent/defendant: Elizabeth Jane Craigen; Insured (deceased)/third Party: Edmund Francheville Russell
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
17 May 1886
Procedural Posture
Civil Appeal (insurance/equity) / Final Appeal to Supreme Court of Canada From Supreme Court of Nova Scotia Decision Affirming Court of Equity
Outcome
Appeal dismissed with costs; judgment of Supreme Court of Nova Scotia affirmed; bill to cancel policy dismissed
Legal Topics
Wager Policy, Insurable Interest, Beneficiary Designation, Assignment of Life Policy, Statute Construction (14 Geo. III C.48)
Source Language
english
Insurance Law Equity Contract Law Public Policy Wager Policy Insurable Interest Beneficiary Designation Assignment of Life Policy +1 more

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Parties

North American Life Assurance Company

Appellant/plaintiff

Elizabeth Jane Craigen

Respondent/defendant

Edmund Francheville Russell

Insured (deceased)/third Party

Procedural Posture

Civil Appeal (insurance/equity) / Final Appeal to Supreme Court of Canada From Supreme Court of Nova Scotia Decision Affirming Court of Equity

Legal Issues

  1. 1 Whether a policy effected by a person on his own life payable to a third party who has no insurable interest is void as a wager policy under 14 Geo. III c.48
  2. 2 Whether s.2 of 14 Geo. III c.48 requires insertion of the beneficiary's name in policies effected by the insured on his own life
  3. 3 Whether the insurer can avoid a policy after issuing it with knowledge of the circumstances and tendering premium back

Ratio Decidendi

The policy was valid because it was a bona fide contract effected by the insured who had an insurable interest in his own life, the statute 14 Geo. III c.48 does not render such a policy void merely because the named beneficiary lacked interest, and s.2 does not apply to policies taken out by a person on his own life; the insurer, having contracted with full knowledge, cannot avoid the policy.

Court Disposition

Appeal dismissed with costs; judgment of Supreme Court of Nova Scotia affirmed; bill to cancel policy dismissed

Orders

  • Appeal dismissed with costs
  • Bill dismissed and policy not cancelled