Grand Prairie life insurance lawyers know that for a life insurance company to establish misrepresentation as a defense for refusing to pay on a claim, that the life insurance company must plead and prove five elements: the making of the misrepresentation; the falsity of the misrepresentation; reliance on the misrepresentation…
A 1982, 14th Court of Appeals opinion recognizes and upholds that life insurance policies typically exclude suicide as an assumed risk of the carrier. The opinion is styled, Parchman v. United Liberty Life Insurance Co. In Parchman the policy excluded suicide as an assumed risk for two years from the…
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. This preexisting condition exclusion is discussed in the 1921…
For a beneficiary to recover death benefits, the insured must be dead. Doubt may arise when the insured disappeared or when there is uncertainty over the identity of the dead body. This is illustrated in the 1987 Texas Supreme Court case, Davidson v. Great National Life Insurance Co. and in…
If insurance benefits are paid to a beneficiary who does not have an insurable interest, that beneficiary holds the proceeds for the benefit of those entitled by law to the proceeds according to a 1894, Texas Supreme Court opinion styled, Cheeves v. Anders. This proposition was upheld in a Tyler…
Who has an insurable interest in the life of someone else? The Texas Supreme Court in 1968, declared that 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 the loan balance at the…
Going back to the 1894, Texas Supreme Court opinion, Cheeves v. Anders, it is a well settled proposition in Texas law that it is well-settled that a life insurance beneficiary must have an insurable interest in the insured’s life. The basis for the rule is twofold: no should have a…
Pursuant to Texas Insurance Code, Section 1103.151 and Section 887.205, a life insurance beneficiary who willfully participates in bringing about the insured’s death, either as a principle or as an accomplice, forfeits any right to benefits. The benefits are payable to any innocent contingent beneficiary or to the insured’s nearest…
What are some of the rules related to the naming of a spouse as the beneficiary in a life insurance policy? One spouse can designate his or her estate as the beneficiary of the policy, at the expense of the other spouse, absent a showing of actual or constructive fraud. …
Who is entitled to life insurance benefits? This may seem an easy answer and is most of the time, but not always. According to the Texas Supreme Court and Texas Insurance Code, Section 1103.102, the designated beneficiary of a life insurance policy generally is entitled to the proceeds upon the…