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 Posted: Mon Mar 02, 2009 10:59 pm Post subject: Can an agent sell policy to family member and be benficiary? |
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| For instance my step son is an agent he had his father to name him as a primary beneficiary also because he has an interest in seeking their home once his father has died. |
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cfoster39
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| Posted: Tue Mar 03, 2009 7:24 am Post subject: |
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As far as I understand selling insurance is okay, but no-one can exert pressure on the policy holder to name him/her as the beneficiary. The policy holder has the right to act on his/her free will regarding choosing the beneficiary. If the son is putting pressure on old dad to add him on the plan, he is violating the ethics of business. Its very unbecoming of an agent. What do you guys say?
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coffeeandcaramel
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| Posted: Tue Mar 03, 2009 1:12 pm Post subject: |
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Cannot put pressure on him to be the beneficary, but look at it this way..if the son was not an agent, and dad bought the same policy would he have named his boy beneficary anyway?
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Lori
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| Posted: Wed Mar 04, 2009 6:44 pm Post subject: |
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Naming his as a beneficiary on a policy has nothing to do with who gets the house if he dies. If you are worried that you won't have money to pay for the house if he should die; you can take out a policy on him, as well. As far as the house goes, it depends on your state law about community property, you should talk to your husband about it and an attorney.
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Louise Jackson-Marquez
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jacksonfinancial
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| Posted: Thu Mar 05, 2009 11:01 am Post subject: |
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By the logic of nomination, the person you are going to nominate should get affected when the policy holder undergoes unfortunate incident. There are companies that do not interfere if you nominate someone. But it leads to trouble when you claim for the insurance. Check with the laws at your state. The procedure of nomination is made in such a way that there will be no disputes on the primary nominee. e.g. a widow having two independent son can not nominate her son as they are not dependant on her. The insurances are accepcted mostly accepted without hesitation, by believing the person who undertakes the responsibilty of information. A right kind of insurance always emphasize on this, Although the most private insurances may try to bypass them.
Here since he is independent, can not nominate his father if they are not interdependent. Don't forget to check the policy guide at the agent. |
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VIJAYRAJ
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| Posted: Thu Mar 05, 2009 12:16 pm Post subject: |
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Hi cfoster
I would like to comment .i.e. in all you can sell policy to family member but the beneficiary will be determined by the policy holder. And as usual one cannot pressurize a policy holder to modify the nominee. As mentioned by Vijayraj " the person you are going to nominate should get affected when the policy holder undergoes unfortunate incident. " So it's not guaranteed that you can became beneficiary of the policy. As you are not dependent on Family member.
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bharti
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| Posted: Sun Mar 22, 2009 11:50 am Post subject: |
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| first of all, it is okay to name the agent as the beneficiary. however, it is NOT okay to put pressure on the policy holder to name anyone as the beneficiary. it must be solely based on the free will of the policy holder. if the father were to purchase the policy from another agent, would he name his son as the beneficiary? if the answer is yes, then there is no problem in the case that you mentioned. |
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seven7
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| Posted: Sun Mar 22, 2009 12:16 pm Post subject: |
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i agree with lorry on her stance that if the boy would not have been the agent then what action he would have taken?
Ok if he wasn't the agent then the decision would have been at the sole discretion of the policy holder and again the comission earned would not have been with the family member.
now in this second case where he is agent then comission is coming to the same family (big savings) and as far as 'force' is concerned it is unethical. 
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amit
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| Posted: Sun Mar 22, 2009 12:19 pm Post subject: insurance |
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| Not to question ANY 'ethical' dealings here, but, if the son WAS NOT an agent, would the policy be brought up? I mean, what would the odds be if there was NO Insurance agent in the family and the Insurance policy be talked about? The % of that would probably be lower if a family memeber was not an Insurance agent. Hope this makes sense. |
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sdchargersfan
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| Posted: Sun Mar 22, 2009 12:59 pm Post subject: |
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sdchargersfan
it does make sense that if the family member would not have been agent there would not have been policy (or there are less chances) but still if some friend of the person would have sold him the policy. percentage is really an issue..
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amit
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| Posted: Mon Mar 23, 2009 11:12 am Post subject: insurance |
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| I don't know. It would seem to me that the 'Conflict of Interest' thing would come into play here (maybe?). |
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sdchargersfan
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| Posted: Mon Mar 23, 2009 11:32 am Post subject: |
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| Quote: | | It would seem to me that the 'Conflict of Interest' thing would come into play here (maybe?). |
It ''could'' but shouldn't...if the son was going to be the beneficary on dad's policy even if he was a ditch digger...then certainly no conflict...do you see what I mean...now if there are other children, a wife, whatever and they are being edged out...totally different...as an example what if your boy grows up and becomes an agent? As a good mother you'd switch your ins to him, then you'd likely buy a life policy from him as well...You would list him as beneficary, because he is your only child and your only heir, and you want him to get everything when you're gone right? So where is the conflict? There is none, because he is (or will be when he's an adult) the beneficary on everything you have anyway...
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Lori
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| Posted: Tue Mar 24, 2009 5:14 am Post subject: |
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| it totally depends on the policy holder whom he want to be primary beneficiary but it should be on utmost good faith.insurance is done to save from financial losses not for money making.so keep in mind what the policy holder wants he should not appoint any one as primry beneficiary due to pressure.Primary beneficiary is agent himself,its not the problem i think because beneficiary has legal relationship with policy holder |
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akhilesh
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