Tyre v. Aetna Life Insurance Co.
Supreme Court of California
54 Cal. 2d 399 (1960)
Louis Tyre funded a $20,000 life insurance policy with community-property funds during his marriage to Rebecca (plaintiff), initially designating her as beneficiary for a lump-sum payout, but later changed the payment method to an annuity (with any remainder after Rebecca's death passing to their three daughters) without Rebecca's knowledge or consent; after Louis died, Rebecca learned of the change, rejected it, and demanded the full lump-sum cash value instead, but Aetna (defendant) refused, and the trial court and court of appeal both ruled against Rebecca's claims for the full amount and her preferred payment method.
Whether an insured can dispose of a community-property insurance policy through testamentary gift without the consent of his or her spouse.