Click in the Eyewitness News story window above to watch Miriam Hernandez's report from the courthouse.
They were both listed as next of kin on the policies. McDavid had been run over by a car. The coroner notified them when his body was found in a dark alley.
McDavid, however, had a real family. And because of the alleged fraud they did not learn of his death until five months later.
"We love our brother and we didn't know where he was. If we knew where he was we would of done anything to help him," said Sandra Salman, McDavid's sister.
Attorney Gloria Allred is representing the family. They still have no idea where McDavid's ashes are because they were claimed by Golay.
"I think that it is devastating enough for her to have to know that he died in an alley after having been run over by a car in a situation that appears not to be an accident," said Gloria Allred.
Salman in court Tuesday testified about her brother. She explained how he was once a student at Sacramento State University.
McDavid was pursuing a career as a disc jockey when they lost touch.
Questioning of Salman was limited and the defense raised a question about a possible bias.
She and other family members could benefit if Rutterschidmit and Golay are convicted, possibly collecting on the insurance the defendants purchased.
The prosecution presented more evidence linking a station wagon, the alleged murder weapon, to Golay.
A neighbor had taken photos of red paint that had spilled near Golay's home. The photos show the car with paint on one of the wheels.
Golay and Rutterschmidt were initially charged with fraud in federal court, but that case was dismissed after the two were charged by the District Attorney's Office in the murder case.
The women have remained jailed without bail.