I know a person who has taken ownership of a life ins policy without the original owners permission, is this legal?

  1. 429 POINTS
    Rich Haag
    President, Rich Haag & Associates, Inc., Clayton, NC
    Absolutely not legal. The owner of the policy is the one with all the power to change the policy. In order for someone else to take control of the policy the owner would have to give their permission in writing. That form would be on file with the insurance company. If you feel the change was done in error or fraudulently you would need to have the original owner contact the insurance company. If they will not respond, which is possible, then a call to your state insurance complaint department will help.
    Answered on March 9, 2015
    flag this answer
  2. 37376 POINTS
    David G. Pipes, CLU®, RICP®
    Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
    There could be confusion about ownership. The owner of the policy can be someone other than the insured. For a variety of reasons the owner of the policy could be a former spouse for example.
    An insurance company must respond to the owner of the policy, unless the owner is deemed incompetent. In the case of incompetency, the court appoints a conservator. The conservator acts on behalf of the owner of the policy but must the actions of the conservator are under the scrutiny of the court.
    Answered on March 9, 2015
    flag this answer
  3. 10968 POINTS
    Tim Wilhoit
    Owner, Your Friend 4 Life, Brentwood TN
    An owner cannot be changed on a life insurance policy without the legitimate signature of the original or current owner. If forgery is involved it will not stand up in court if challenged. Just be sure you are not confusing the owner of the policy with the insured on the policy. It does not necessarily have to be the same person. For example, if the policy was written on a minor child, the parent would be an owner even years later if never changed.
    The only exception to an owner not signing over policy ownership is court ordered incompetence. Then someone with power of attorney could transfer ownership of the policy and it would stand in court.
    Answered on March 10, 2015
    flag this answer
  4. 21750 POINTS
    Jim Winkler
    CEO/Owner, Winkler Financial Group, Houston, Texas
    That is a very interesting question! Legally, the only way that ownership of an insurance policy can be transferred from one person to the next is if the original owner has done so by completing paperwork with the insurer, and signing it over to the next owner. If there is some debate over whether this has been done ethically or legally, then I'd start by finding out whether the original owner was aware of what they were doing. If the original owner did so under duress, or was not mentally competent (maybe suffers from dementia or Alzheimer's, for example) to make that decision, then there might be grounds to have the insurer legally cede ownership back to the original owner. If the owner signed it over and did so in their right mind, and freely, no matter how much you may dislike the idea, it will be virtually impossible to undo. I'm sorry if that's not the answer that you were hoping for, but I'm glad that you asked.Thank you for doing so, and I hope that it works out for you.
    Answered on March 16, 2015
    flag this answer
  5. 63333 POINTS
    Peggy Mace
    Most of the U.S.
    There is legally no way to take ownership of a life insurance policy without the current owner's permission. As others have stated, there may be confusion as to who actually owned the policy. Or perhaps the formed was forged, which is illegal. Hopefully you can get to the bottom of this.
    Answered on April 15, 2015
    flag this answer
    6. Did you find these answers helpful?
    Yes
    No
    Go!

Add Your Answer To This Question

You must be logged in to add your answer.


<< Previous Question
Questions Home
Next Question >>