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.…
Bad faith is hard to prove in Texas. The standards for getting a bad faith judgment are high standards. But it can be done. It just depends on the circumstances of the case. The Telegraph, a Macon Georgia, newspaper published the results of a bad faith case involving Geico insurance. …
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…
Disability claims filed under an ERISA plan are different than disability claims that are not governed by ERISA. The United State District Court, Northern District, Dallas Division, issued an opinion in 2018, that discusses these types of cases. The case is styled, Aaron Rome v. HCC Life Insurance Company. This…
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…
Life insurance lawyers will see fights over who is entitled to life insurance proceeds. One of the fights is over whether or not the named beneficiary had an insurable interest in the life of the insured. The main case cited for dealing with this issue is a 1942, Texas Supreme…