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 Posted: Sat Jan 02, 2010 12:07 am Post subject: |
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Most states do not require that an insurable interest exist between beneficiary and insured/owner, but there are a couple still stuck in the 19th century. The California Insurance Code specifically states that the owner of a life insurance policy has an absolute right to name anyone of his choosing as the beneficiary, without regard to insurable interest or marital status. An insurer is powerless to dictate who may/may not be a beneficiary under the CIC (obvioulsy, it cannot be the insured).
As for the issue of gays/lesbians, California and many other states have laid to rest the concept that an insurable interest does exist between persons who have a registered domestic partnership.
An insurable interest can exist between persons who rely on another for financial or other necessary support, so it is possible for unmarried "boy/girl-friends" to have an insurable in one another. It's up to the insurance company to determine whether there is insurable interest or not when it's not readily apparent.
But the insurance laws of most, if not all, states clearly articulate that a contract of insurance (regardless of form--life, health, auto, etc) is VOID if there was no insurable interest at the time of policy issue. If an insurer can demonstrate that there was no insurable interest between a boy/girl-friend when it issued to policy, their only obligation would be to refund the aggregate premiums less loans & interest, if any.
Obviously, there is not enough information provided in the original post to offer absolute advice. But if the OP is the owner, she has an absolute right to change the beneficiary (unless, as InsTeacher points out, the beneficiary is irrevocable, which complicates the matter).
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MaxHerr
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| Posted: Sat Jan 02, 2010 12:39 am Post subject: |
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| I am not wrong you are just having a hard time understanding the question. You keep assuming. Assumption is a dangerous thing and if you do the same in your everyday practice with your clients, i would be afraid to be your client. You assuming everything is dangerous. |
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dhop1070
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| Posted: Sat Jan 02, 2010 1:21 am Post subject: |
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Dhop, you are making absolute statements that are simply wrong. Tell me where my understanding is wrong. You believe that insurable interest must exist with the beneficiary. I am telling you that policies can be purchased without an insurable interest with the beneficiary as long as their is an insurable interest between the owner and the insured.
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| Posted: Sat Jan 02, 2010 2:25 am Post subject: |
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| I apologize and am leaving your board |
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dhop1070
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| Posted: Sat Jan 02, 2010 12:45 pm Post subject: |
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dhop, I hope that you choose to stay. Just post correct information and don't guess at answers.
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| Posted: Sun Jan 03, 2010 3:23 am Post subject: |
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Right on Max!! Great post.
The Insurable Interest rule is very vague and in some states, like California, hasn't been a factor since 1991 ( I know this because I was the lead Investigator in the case he mentioned involving gays'/lesbians.
Let's look at this from a slightly different angle. If one were to accept that an insurable interest couldn't possibly exist between a boyfriend/girlfriend and therefore, they cannot take out life insurance policies on each other, without the knowledge or approval of the partner, one would also have to believe the same restriction applies to husbands/wives - and that is simply not the case.
The insurance companies and regulatory agencies must do their best to monitor cases in which policies are taken out with ill intent. If the OP has reason to beleive the ex took out a policy because he intended to harm her, she needs to contact the police or local DA right away.
Otherwise, she needs to inform him, via registered mail with a return receipt, that she does not approve of the policy in question and plans to inform authorities if he does not cancel it right away.
Honestly, the boy/girlfriend
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InsInvestigator
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| Posted: Sun Jan 03, 2010 1:35 pm Post subject: |
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| Quote: | | I apologize and am leaving your board |
I intend to make sure of that.
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Lori
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| Posted: Sun Jan 03, 2010 4:33 pm Post subject: |
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| Quote: | I know this because I was the lead Investigator in the case he mentioned involving gays'/lesbians.
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I would like to know more about this case, for my OWN curousity, please. Sounds like it was very intense and a challange for you. | Quote: | | The insurance companies and regulatory agencies must do their best to monitor cases in which policies are taken out with ill intent. |
I'm going to 'narrow' this down a bit. Being in the Military, I've read, over the years, that spouces have tried to get the Soldiers (not JUST the Army, but, all brances of the Military) SGLI on "ill" pretenses. A few examples: At Ft. Bragg (years ago) a wife tried to poison her husband to get his SGLI. At a Marine base, in North Carolina, a wife shot and killed her husband to get HIS SGLI. I don't understand how people can do this...what the spouses are thinking.....and makes them (the spouses) think they can get away with such crimes. |
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sdchargersfan
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| Posted: Sun Jan 03, 2010 6:28 pm Post subject: |
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Hey Chargersfan, I hope your New Year is off to a great start.
In 1996, I investigated a case in which two female "partners" were not allowed to name each other as beneficiaries on their life insurance policies. Even though they were buying a house together, raising children, and living as any other married couple, the insurance company claimed that an insurable interest did not and could not exist.
I took statements and spent several months collecting documents which clearly showed an insurable interest existed between the two women and the insurance company was, in fact, violating their civil rights by not issuing the policies.
When the matter was brought before the Commissioner, the insurance company stood fast and was promptly fined $100,000.
In my opinion, the Commissioner was being very cautious not to let one of the Bay Area's Social Action/Gay/Lesbian groups sink their teeth into this case as this could very well have turned into a media frenzy and placed him in the proverbial spotlight.
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InsInvestigator
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| Posted: Sun Jan 03, 2010 8:29 pm Post subject: insurance |
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| Happy New Year to you, too!! WOW!!....I think that WAS violating the rights that that couple have. The state of CA seems to 'walk the line' when it comes to Gay/Lesbian issues. 'Yes, they can. No, they can't' kind of deal. That's crazy!! |
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sdchargersfan
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| Posted: Mon Jan 04, 2010 12:52 pm Post subject: |
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A lot of changes between 1996 and 2010.. I doubt you'd see this again now..
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Lori
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| Posted: Mon Jan 04, 2010 8:33 pm Post subject: |
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Hey Lori, wanna know what gives me a great feeling about my job? Knowing that some of the things I did back in 1996 are the reason for the change.
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InsInvestigator
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| Posted: Mon Jan 04, 2010 8:48 pm Post subject: |
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I remember earlier in my career and writing policies on homosexual couples. We would simply put the parents as the beneficiaries and then change the beneficiary at the policy delivery.
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| Posted: Mon Jan 04, 2010 9:27 pm Post subject: |
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And I'm so glad you no longer do things that could very well be considered fraudulent.
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| Posted: Mon Jan 04, 2010 9:43 pm Post subject: |
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What's fraudulent about it? The last time I checked, the owner has the right to change their beneficiary anytime that they want. There also isn't any language stating that they don't plan on changing beneficiaries.
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