INSURANCE - FRATERNAL BENEFIT POLICY - WHO IS A "DEPENDENT''

Authors

Michigan Law Review, University of Michigan Law School

Abstract

Deceased was an inmate of an old age home, having paid an entrance fee and signed an entrance contract in which the home reserved the right to discharge inmates at any time without reason upon refund of a proportionate amount of the entrance fee. Deceased lived in the home until his death. He had taken out a policy in a fraternal benefit association whose by-laws provided that "In the event of the death of all beneficiaries named in a certificate . . . the benefits shall be paid . . . [to the] . . . person or persons upon whom the member is dependent . . . sister . . . " The home and the sister were the only claimants. Bill of interpleader was brought by the fraternal benefit association. The home claimed that as the entrance contract was void, it was not furnishing support under a contract and the member was therefore dependent upon it. Held, deceased was not dependent upon the old age home, which could discharge inmates at pleasure, because the association by-laws mean legal dependency as contemplated by statute and do not include support furnished by virtue of a contract, or voluntarily without legal or moral obligation. The Maccabees v. Stone, 306 Ill. App. 468, 28 N. E. (2d) 738 (1940).

Recommended Citation

Michigan Law Review, INSURANCE - FRATERNAL BENEFIT POLICY - WHO IS A "DEPENDENT'', 39 Mich. L. Rev. 825 (1941).
Available at: https://repository.law.umich.edu/mlr/vol39/iss5/14