Sun Life Assurance Co. of Canada v. U.S. Bank Nat’l Ass’n

Dist. Ct. did not err in granting plaintiff’s (purchaser of life insurance policy) motion for summary judgment in action seeking declaration that plaintiff was entitled to proceeds of said policy, even though plaintiff, which had purchased policy as part of investment vehicle, did not have insurable interest in insured who had died seven years after policy had been issued. Under Wisc. law, no policy is invalid merely because policyholder had no insurable interest in insured, and defendant-insurance company could pay proceeds to someone other than policy owner, who had equitable claim to said proceeds. However, plaintiff was entitled to said proceeds since no one who was equitably entitled to said proceeds claimed entitlement to said proceeds. Ct. rejected defendant’s argument that its refusal to pay death benefits was authorized by Wisc. statute that voided all gambling contracts.