Life Insurance Loan Policy Issue

[VolAgent]

Mom needs to call the insurance company and get the checks reissued.

$5,000 is enough that people will fight and rat each other out. If by some miracle he manages to get the checks deposited and clear, I would say he is almost certainly guilty of some type of financial crime. If his brother or sister ever find out, all it takes is one phone call and he could be in a world of trouble.

Whatever mom's intentions, the checks are not made payable to him and for him to convert them to his use without the explicit permission of his siblings is just inviting trouble.

 

[Lars8868]

Mom called the insurance company and told her the checks can only be made payable to policy owner.

Friend is considering mailing checks to his brother and sister have them cash and then transfer money to him.

Any better more timely suggestions/options?

 

[BeeSelective]

Mom can't take loan on a policy she doesn't own.

 

[WinoBlues]

Spidey sense started dinging at the first post. It has only gotten louder.

 

[VolAgent]

Mom called the insurance company and told her the checks can only be made payable to policy owner.

Friend is considering mailing checks to his brother and sister have them cash and then transfer money to him.

Any better more timely suggestions/options?

Yes, run away from this.

I don't care if you are an insurance agent or just a friend, this has nothing but trouble written on it.

Anything that does not involve the brother and sister endorsing or cashing the checks almost certainly is a felony for your friend.

No, I am not an attorney or law enforcement. However, $5,000 is real money. When they realize they could have had that money instead, they may just decide to tell someone.

 

[WinoBlues]

Yes, run away from this.

I don't care if you are an insurance agent or just a friend, this has nothing but trouble written on it.

Anything that does not involve the brother and sister endorsing or cashing the checks almost certainly is a felony for your friend.

No, I am not an attorney or law enforcement. However, $5,000 is real money. When they realize they could have had that money instead, they may just decide to tell someone.

>>When they realize they could have had that money instead, they may just decide to tell someone

Or, they figure out they can have it _as well_. Yeah, Yeah, I got a friend......

 

[LGilmore]

This situation really has the appearance of money laundering about it. EVEN if it doesn't, it does. Can't tell you how many years a question like this came on the testing.

The guy is your friend, but stay out of this, offer no advice, claim ignorance on the matter. You could very easily get sucked into something where you're explaining a transaction you have nothing to do with to the feds.

I agree with Volagent, this is one you should stay away from. Let the banks decide what to do. You simply don't need the potential trouble.

 

[pfg1]

Policy loan requests can only be made by an owner, and the check can only be issued to an owner. They couldn't issue 3 checks to 3 different people unless they were all owners - including mom who supposedly made the request. And if that was the case all owners would have to sign the policy loan request as well.

I'm calling BS on this whole thing. Smells like a money laundering fishing trip.

 

[regularAgent]

Lars8868, I will tell you my experience with this kind of policy.
Even when they are not a investment, the eyes of the insurance company and the goverment are over it, because at the end they are an investment. So try not to mess about with it. don't get in the midle with your friend if you are not his MOM agent.
Not a way the insurance company is going to stop the charge, because the checks were issue against the insurance company account, they were not issue against the client account or the the policy. So is a debt.
BUT, your friend Mom can always talk to the insurance company and they may reorder the account and recalculate de loan, if the checks are return.
If he keep on and on trying to cash those checks, the police may be waiting for him the next time, because the insurer may presume there was a fraud by him.