by Guest » Tue Dec 28, 2010 12:51 pm
I am beneficiery. another person is executor and there is another one that has a collateral assignment. the executors have continued borrowing money and the collateral asignee wants to collect thru present. At what time does the ins. company pay thru? Present or time of death?
Posted: Tue Dec 28, 2010 06:14 pm Post Subject:
the executors have continued borrowing money
This is not lawful. You either have the facts confused or you have misstated them. No one can borrow money from an in-force life insurance policy but the policyowner. Executors manage the estates of deceased persons.
A party with a collateral assignment has a priority claim against the death proceeds over the named beneficiary, up to the full amount of the unfulfilled assignment (as in repayment of a loan, only the outstanding balance/interest is a debt on the proceeds).
Collateral assignments and death proceeds are paid directly to those named persons, not to the estate of a deceased person. Executors would not have access to those funds.
Has the insured died?
Add your comment