In Re Marriage of Bratton

Opinion

DiFIGLIA, J.

*

The issue presented in this appeal is: may a former spouse be ordered to divest herself of her interest in a policy insuring her former husband’s life because he objects to her continued retention of the policy? We hold that she cannot.

Appellant Karen Mick Bratton appeals an order in favor of respondent Ronald E. Bratton, entered in their marriage dissolution proceeding, directing her to terminate a whole life insurance policy in the face amount of

[793]

$100,000 which Karen owns on the life of Ronald.

1

Karen contends the court erred in that (1) Ronald lacked standing to contest her retention of the policy, (2) there was no evidence to support the court’s finding that the equitable doctrines of laches, estoppel or unclean hands mandated the termination of the policy, and (3) the decision of the court is predicated on a finding of marital fault forbidden by the Family Law Act. We reverse.

Factual and Procedural Background

*

Discussion

*

I

Standing

After their separation, Ronald ceased paying premiums on the insurance he held on Karen’s life and the policy lapsed. Karen continued her payment of premiums on the policy she owned insuring Ronald’s life. Karen contends Ronald lacks standing to challenge the legality or enforceability of the policy. We agree.

In

Jenkins

v.

Hill

(1939) 35 Cal.App.2d 521 [96 P.2d 168], the named beneficiary of two insurance policies sued the administrator of the insured’s estate to convey the proceeds of the policies which had been paid to the administrator. The trial court found the beneficiary had an insurable interest in the policies and was entitled to the proceeds. The administrator appealed. The appellate court affirmed the finding of the trial court that plaintiff had an insurable interest. More importantly, in light of the issues raised by this appeal, the court held the administrator lacked standing to question the beneficiary’s insurable interest. “. . . the insurer is the only party who can raise the question of insurable interest, ... if the insurer waives the question of interest and pays the money to the named beneficiary, or into court, neither the personal representative nor the creditors can claim the proceeds on that ground.”