Exclusions in life insurance policies are common. The Texas Insurance Code, Section 1101.055 limits the permissible life insurance exclusions to suicide, stated hazardous occupations, and aviation activities. Courts have construed this list to render void other exclusions, such as one excluding a loss caused by a preexisting condition. A 1921,…
This may seem strange but there are times an insurance company will deny a claim for life insurance benefits based on their assertion that the insured has not been proven to be dead. This is discussed in the 1987, Texas Supreme Court opinion styled, Davidson v. Great National Life Insurance…
Here is a case from the United States 7th Circuit that deals with life insurance when the policy is an Employee Retirement Income Security Act (ERISA) policy. The case is styled, Emma Cehovic-Dixneuf v. Lisa Wong. Pursuant to 29 U.S.C., Section 1104(a)(1)(D), ERISA requires administrators of employee benefit plans to…
Who has an insurable interest in a life insurance policy? The Texas Supreme Court, in 1979, in the case styled, Empire Life Insurance Co. v. Moody, held that a tenant holding property or an estate during the life of another has an insurable interest in the latter’s life. Is an…
Life insurance lawyers can tell you that sometimes a corporation can be a beneficiary to a life insurance policy. The key word here is “sometimes” because it does not mean a corporation can always be a beneficiary of a life insurance policy. Corporations may name themselves beneficiaries of policies they…
A 1938, opinion from the Amarillo Court of Appeals helps answer the above question. The case is styled, Smith v. Metropolitan Life Ins. Co. et al. This lawsuit is a contest over the proceeds of a life insurance policy in the sum of $500 issued upon the life of John…
What happens when a beneficiary has an insurable interest when the life insurance policy is obtained but later on, that insurable interest no longer exists? That question is answered in an 1894, opinion from the Texas Supreme Court styled, Cheeves v. Anders. Anders was the Administrator of the Estate of…
When an employer takes out life insurance on an employee and names itself (the employer) as the beneficiary, it there an insurable interest. Each case needs to be looked at on its on merits. A 1998, Tyler Court of Appeals is good case to read. It is styled, Stillwagoner v.…
Here is an interesting case from the 14th Court of Appeals. It is a 1998, opinion styled, Tamez v. Certain Underwriters at Lloyd’s. Two employees of a Stop-n-Go (NCS) store were killed while on duty. NCS, as the employer had life insurance policies on the employees and made a claim…
Life Insurance Lawyers can inform their clients that a creditor can have an insurable interest in a life insurance policy. There is a caveat. A creditor may designate itself the beneficiary of a policy purchased by it on the life of its debtor, but its insurable interest is limited to…