This section contains the nature of the case and procedural background.

In 1968, decedent Jerome Rogers and Susan Rogers (P) entered into a separation agreement which provided for the continuation of decedent's life insurance policy naming her and her children the beneficiaries. At the time, decedent's life was insured for $15,000 through a Travelers Insurance Company group policy issued to Grumman Aerospace Company, decedent's employer. This coverage terminated in 1970 when decedent left Grumman. He married Judith Rogers (D) in June 1974. In 1976, decedent obtained employment with Technical Data Specialists, Inc., and, by virtue of this employment, his life was insured for $15,000 through a group policy issued by Phoenix (D1). D was designated the beneficiary on that policy. Jerome Rogers died on April 1, 1980, and D1 paid the proceeds of the policy to D. Ps commenced this action to impress a constructive trust on the insurance proceeds. D moved to dismiss the complaint or for summary judgment and D1 also moved for summary judgment. Ps cross-moved for summary judgment against both Ds. The court reasoned that Ps were not entitled to the proceeds because the separation agreement did not address the decedent's duties in the event of cancellation or lapse of the first insurance policy. The Appellate Division affirmed. This appeal resulted.

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