Burgart v. Burgart

[411]

Opinion

BROWN (Gerald), P. J.

The widow (Bernice) of William F. Burgart and his previous wife (Elizabeth) dispute who should receive the death benefits of two insurance policies. From a judgment favoring the former wife, Bernice appeals.

Hughes Aircraft Company, employing Mr. Burgart, provided its employees with term life insurance through Pacific Mutual Life Insurance Company. The amount of insurance payable on the death of an employee varied with the amount of his salary. In 1957, when Mr. Burgart was first insured his salary ranged from $125 to $149 per week. This entitled him to $7,500 death benefit coverage. Burgart named Elizabeth, to whom he was then married, as beneficiary.

In 1962 Burgart and Elizabeth came to a parting of the ways. They entered into a property settlement agreement providing in part: “Husband does hereby covenant and agree to continue and maintain in effect without change in terms or coverage change in beneficiaries, or lapse, the policies of insurance described hereinabove in Sub-paragraphs (1) and (m) of Paragraph 3 hereof, for so long as he is eligible for such insurance . . . .”

The insurance policies referred to in the property settlement agreement were the Pacific Mutual policy with salary oriented coverage and another policy provided by Hughes Aircraft with Aetna Life & Casualty Company for a group annuity plan. Under the Aetna policy death benefits were payment in the amount of employee contributions plus accumulated interest on the contributions. The parties have stipulated the amount of Burgart’s contributions plus interest as of the date of his divorce was $1,939.27 and the amount after his divorce to the date of his death $2,439.49.

At the time of his divorce in 1962, Mr. Burgart had received salary increases which entitled him to $15,000 death benefit coverage under the Pacific Mutual policy. Following his divorce, Burgart remarried and, in violation of the property settlement agreement, changed the provisions of the Pacific Mutual and Aetna policies to name his new wife, Bernice, as beneficiary. When he died Burgart had received additional salary increases which entitled him to $30,000 death benefit coverage under the Pacific Mutual policy.

Bernice brought this action to determine her entitlement under the Pacific Mutual policy, the Aetna policy and a third policy which is not involved in this appeal. The trial court ruled Elizabeth was entitled to the entire proceeds of both the Pacific Mutual policy ($30,000) and the Aetna policy ($4,378.76).