You are not the father.

[Cornelius]

If taking a you tube your there are many videos about men finding out they are not the childs father per a DNA test.

So what happens if the birth mother has a life policy on the man and the carrier finds out he isn't the father with no insurable interest? The policy is beyond the contestability period.

You are not the father.

 

[DHK]

So what happens if the birth mother has a life policy on the man and the carrier finds out he isn't the father with no insurable interest?

Insurable interest is determined at policy issue. As far as the insurance company is concerned, it's no longer an issue, even when insurable interest no longer exists later.

 

[walthamny]

The Insurable interest is a little vague concept. It is more to protect the insurance company. Its based on laws from the 19th century If we did not have it, it would drive up insurance costs due to fraud. There is no fraud here in your example. What happened is part of life. Insurance industry is fine with it. Now if you are analytical person, you may say what if the insurance companies started applying insurable interest at the time of payment. For one thing, the insurance companies will self destruct themselves if they did that. No one will buy insurance if payment dependent on proving insurable interest later on. Also generally speaking insurance contract laws copy state contract laws with some exceptions. If I rent a sign a lease for 12 months, when I loose my job on month 3, the landlord can not evict me just for that. The contract still survives. Now I still have to pay rent.

 

[Allen Trent]

If taking a you tube your there are many videos about men finding out they are not the childs father per a DNA test.

So what happens if the birth mother has a life policy on the man and the carrier finds out he isn't the father with no insurable interest? The policy is beyond the contestability period.

You are not the father.

Some states have laws that all rigts to be a beneficiary or owner are extinguished at time of divorce (unless specifically listed in divorce decree or beneficiary/owner updated after divorce to name ex spouse)

Doubt this applies if they were never married as there would be no law forcing the carrier to not pay a spouse after a divorce on a claim

 

[WinoBlues]

So what happens if the birth mother has a life policy on the man and the carrier finds out he isn't the father with no insurable interest? The policy is beyond the contestability period.

Interesting.
Married? Is he on the birth certificate? In the PRK (Peoples Republic of Kalifornia) non daddies have had to fight to get off of child support.
If it couldbe proven that she knew would that be material misrepresentationion?

Some states have laws that all rigts to be a beneficiary or owner are extinguished at time of divorce (unless specifically listed in divorce decree or beneficiary/owner updated after divorce to name ex spouse)

Yup, had one like that. Bene / owner still lister as spouse. Per claims, California being a community property state, they could not pay him because he was not listed as ex spouse. We paid the contingent. It was a small FE policy, paid to the grandson, and gramps didn't need the money so no big. Had it been a large policy? Who knows.

 

[DHK]

Some states have laws that all rigts to be a beneficiary or owner are extinguished at time of divorce (unless specifically listed in divorce decree or beneficiary/owner updated after divorce to name ex spouse)

Doubt this applies if they were never married as there would be no law forcing the carrier to not pay a spouse after a divorce on a claim

Had a case (not my client) where the beneficiary of a million dollar whole life policy... was the 6 year old son. The deceased client never married the mother.

In that case, she had to petition the probate court for guardianship so she can use the life insurance proceeds. I really do hope that the court "puts the fear of God" in her to not mishandle the funds. I'm sure there were plenty of reasons why they never married.

For anyone curious, here's the California Duties of Conservator handbook (similar for trustees).

 

[Allen Trent]

Interesting.
Married? Is he on the birth certificate? In the PRK (Peoples Republic of Kalifornia) non daddies have had to fight to get off of child support.
If it couldbe proven that she knew would that be material misrepresentationion?



Yup, had one like that. Bene / owner still lister as spouse. Per claims, California being a community property state, they could not pay him because he was not listed as ex spouse. We paid the contingent. It was a small FE policy, paid to the grandson, and gramps didn't need the money so no big. Had it been a large policy? Who knows.

Many carriers wont pay the contingent as contingent only comes into play if primary is deceased. Have seen many carriers send it to probate where creditors get first crack.

$500k case right now where divorced client died, never updated bene form. Spouse is primary & no contingent, but he had 4 kids. Lots of creditors from business & personal loans, so not sure what will be left for kids after creditors & lawyers. Agent staff changed car & home policies at time of divorce, but nothing on updating life bene. 20 year agent. Asked 3 other agents & 2 investment guys & none of them knew the state law voids rights of spouse at time of divorce

 

[Allen Trent]

Had a case (not my client) where the beneficiary of a million dollar whole life policy... was the 6 year old son. The deceased client never married the mother.

In that case, she had to petition the probate court for guardianship so she can use the life insurance proceeds. I really do hope that the court "puts the fear of God" in her to not mishandle the funds. I'm sure there were plenty of reasons why they never married.

For anyone curious, here's the California Duties of Conservator handbook (similar for trustees).

Absent of a trust, i prefer this situation of a minor bene rather than people saying to name an adult friend or relative. At least with a minor, the court will oversee the finances & accounting each year while a minor. Better than an adult friend/relative with no legal oversight or responsibility to use money for kid. Could lose ot to their own creditirs, divorce, lawsuit or blow it on anything they want if they were the direct bene. Even if they do the right thing & give the money annually to the minor, they can owe gift taxes, or have the assets cause financial aid issues of their own because the money paid to the adult bene is legally theirs with no strings attached.

Trust is my 1st preference, then minor direct as bene or a creative designation of an UTMA/FBO designation if carrier allows it

 

[WinoBlues]

$500k case right now where divorced client died, never updated bene form.

Yeah, this was a small $25,000 deal. The ex didn't need the money and was cool with it going to the grandson. I assume it is a state by state issue. But, this was my first one. And it surprised me also.

Now, I have had a few where the ex changed the bene to a girlfriend while the former was paying premiums and unaware. That get exciting.

 

[walthamny]

After just closing a sale, I had the thought of insurance underwriters watching reruns of Maury Povich show and revoking policies. Too much day dreaming. Back to work