Opinion ID: 1156065
Heading Depth: 1
Heading Rank: 2

Heading: premium payment

Text: Earl contends on appeal that because the decree said nothing about insurance, the policy naming Earl as the insured remains unmodified and gives Earl the right to the insurance proceeds. Earl denies La Iad's payment of a single premium entitles her to the proceeds, regardless of her intent in making the payment. The district court cited no authority for its holding that La Iad's payment of a single premium entitled her to the insurance proceeds. This court can find no authority for the district court's holding. In fact, the general rule is that one not a party to an insurance contract who voluntarily pays premiums acquires neither an interest in the proceeds nor a right to reimbursement of the premiums. Proudley v. Fidelity & Guaranty Fire Corp., 345 Pa. 385, 29 A.2d 48, 50-51 (1942); Feely v. Lacey, 133 Mont. 283, 322 P.2d 1104, 1111 (1958). On the other hand, equity may reimburse the payor of premiums for the amount of the premiums if she reasonably believed herself to be a beneficiary under the policy. Perry v. Perry, 484 S.W.2d 257, 260 (Mo. 1972). La Iad did not raise the issue of her entitlement to the reimbursement of her single premium payment either in the courts below or in this Court. We therefore decline to rule on that matter. The only situation we find in which a third party's payment of insurance premiums might entitle her to the proceeds occurs where the premium amount was misappropriated from the third party and paid without her consent. Even in these cases the third party has a right only to those proceeds in proportion to the premium payments. Re Clark, 69 Misc. 527, 127 N.Y.S. 888, 890 (1910); M. Rhodes, 6 Couch Cyclopedia of Insurance Law, § 31:173 at 214-15 (2d rev. ed. 1985). La Iad does not allege the premium payment in her name was made with misappropriated funds or otherwise without her consent. Therefore, the district court erred in holding La Iad entitled to the insurance proceeds. Reversed. Costs to appellant. No attorney fees awarded. DONALDSON, C.J., and BAKES, J., concur.