Can I sue an insurer to cancel a policy?

by wab930 » Sat Jun 18, 2011 02:21 am
Posts: 6
Joined: 18 Jun 2011

I live in California and was recently divorced in March 2011. During mediation I requested then husband obtain a life insurance policy guaranteeing me the full settlement buyout for my financial protection. He would only agree if he could own a "quid pro quo" policy on my life. I owe him no debts and countered by saying I would only agree provided I pre-approved both policies prior to signing the judgment. He did not comply on the day of signing - in February 2011 - and I hastily drew up a side agreement, refusing to sign the quit claim deed until he produced the policies for my review and approval.

Finally received copies of the policies for review last week, three months after signing our judgment. Surprise - he is the owner of both policies. My financial security and personal safety are at risk. His policy on my life has a value of over $2M and he is the beneficiary. Both policies are now active without my approval or signature and he refuses to cancel them. I wrote directly to the local insurance company who set up the policy and cc'd the CEO of the home office, explaining my situation. That was a week ago; I have not heard from either company. Can I sue the insurance company (s) to force termination of both policies?

Total Comments: 2

Posted: Mon Jun 20, 2011 12:06 pm Post Subject:

I've heard that someone else can take out a policy in your name only if that person has an insurable interest. That means this person will suffer a financial loss when you pass away.

Posted: Mon Jun 20, 2011 05:59 pm Post Subject:

Can I sue the insurance company (s) to force termination of both policies?



No.

You have done this wrong, and it will take legal counsel and a court order to get it changed. You should be the owner of the policy on his life. Talk to your divorce attorney to see what he recommends as far as forcing the ownership change.

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