In Bercosky v. Township of Cumberland, the defendant purchased an annuity policy for Mr. Carter, now deceased, the defendant’s sole police officer. At the time, Mr. Carter was designated the beneficiary of the policy. Years later, a second police officer was hired. A portion of the value of Mr. Carter’s annuity was rolled into a policy benefiting this second police officer. Mr. Carter filed this action claiming that defendant had no right to transfer money and that the insurance company that issued the policy acted in bad faith because it offered misleading statements and failed to answer questions regarding the pension.