To illustrate in the term insurance context, consider a policy "worthless" as measured by cash surrender or interpolated reserve value. If the insured could no longer obtain insurance for health or other eligibility reasons, the right to renewal at a set annual premium would suddenly represent considerable value.Mitchell v. Mitchell, 448 S.W.2d 807, 811 (Tex.App. 1969), does not hold otherwise. That case resolved a dispute between the original wife and the second wife of the deceased over an interest in the proceeds of his federal group life insurance policy.
Mrs. Cavenaugh's community interest in the policy equalled no more than one-half of any cash surrender value or interpolated terminal reserve value of the policy at her death. See id. at 696; Bullock v. City National Bank, 550 S.W.2d 763, 766 (Tex.Civ.App.1977); see also Mitchell v. Mitchell, 448 S.W.2d 807, 811 (Tex.Civ.App.1969). The record in this case does not establish that the policy had any cash surrender or terminal reserve value on the date of Mrs. Cavenaugh's death.
Based on the expressed intention of Congress, we hold that the evidence offered by McCraw and Wiggins was rendered irrelevant by controlling federal law. See Mitchell v. Mitchell, 448 S.W.2d 807 passim (Tex.Civ.App. — Houston [1st Dist.] 1969, writ ref'd n.r.e.) (implicitly acknowledging the controlling nature of federal law in this area). The evidence was therefore inadmissible.
Consequently, the construction placed on the statute in Stribling v. United States, supra, holding that substantial compliance is not sufficient, is controlling. Mitchell v. Mitchell, 448 S.W.2d 807 (Tex.Civ.App., Houston, 1st District, 1969, writ ref., n.r.e.). While the cases relied on by appellant do hold that a change of beneficiary may be effectuated by proof that the serviceman intended the change of beneficiary and that he performed some overt act directed toward accomplishing that end, the cases cited by appellant involve National Service Life Insurance policies issued under the provisions of 38 U.S.C. § 701, et seq.