Retmil Financial Services (Pty) Ltd v Sanlam Life Insurance Comapany Ltd and Others (18779/12)
Retmil Financial Services (Pty) Ltd v Sanlam Life Insurance Comapany Ltd and Others (18779/12) [2013] ZAWCHC 65; [2013] 3 All SA 337 (WCC) (30 April 2013)
The court held that Retmil, as cessionary, was entitled to receive payment of the policy proceeds but not to appropriate them to discharge the loan prematurely in the absence of default by the debtor. Retmil was not authorised, either expressly or tacitly, to settle the loan immediately upon the death of the cedent, nor to accept a reduced payment from Sanlam without proper regard for the interests of the estate. The executor, by virtue of the reversionary interest in the policy, was entitled and obliged to challenge the reduced payment and engage with Sanlam to protect the estate's interests…
Source excerpt
- Cession In Securitatem Debiti
- Life Policy Security
- Executor Rights
- Creditor Entitlement
- Compromise Of Claim
- Trust And Accountability