Case Summary:
Proceeds from a stop-loss insurance policy paid to debtor for services rendered by defendant hospital to wife of one of debtor's employees are not property of debtor's bankruptcy estate.  Policy proceeds (in excess of $80,000) are deemed to constitute a constructive trust under Wisconsin law for the assignee health-care provider -- St. Joseph's Hospital.  Representations made by the debtor to its employees concerning health-care coverage, the employer-employee relationship between the parties, general considerations of equity and the legislative history to § 541 of Bankruptcy Code support this result.

Statue/Rule References:
11 U.S.C. § 541 -- Property of the Estate
11 U.S.C. § 547 -- Preference

Key Terms:
Insurance Proceeds
Property Of The Estate
Trusts -- Constructive