There’s lots that has been and will be written about the changes in the definition of insurable interest in the context of life insurance. Traditionally, an owner of a life insurance policy had to have an insurable interest in the life of the person insured. Typically that meant the policyholder herself, or her spouse or child. The insured life could not be that of a stranger with no connection to the owner. Purchasing a policy on a stranger’s life is considered gambling on someone’s life and generally is not permitted in most jurisdictions.But a lot has changed: the definition of insurable interest in various states has been amended, and life insurance policies are now frequently sold, either individually or packaged and sold as collateral for securities issued backed by these portfolios of life insurance policies. The traditional notion of an insurable interest on someone else’s life has been altered.Seventh Circuit Court of Appeals succinctly addressed a … [Read more...] about Sun Life Assurance v. U.S. Bank: Insurable Interest and Life Insurance
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By: Manu Sebastian 8 Jun 2019 3:16 AM GMT To sustain a claim under the accident benefit cover, it must be established that the assured has sustained a bodily injury which resulted solely and directly from the accident. There must exist a proximate causal relationship between the accident and the bodily injury. Moreover, the accident must be caused by outward violent and visible means Accidental death benefit clauses in life insurance policies are very common these days. This gives additional coverage, over and above the usual life insurance sum, if the death of the insured is caused due to an accident. Of course, one has to pay extra premium to avail this benefit. A standard phrase found in such clauses is "death due to accident caused by violent, visible and external means". Though sounding morbid, this phrase has been at the heart of fascinating judicial discussions on what exactly is an accident. Commonly understood, accident is an unforeseen incident which takes place not … [Read more...] about What Is ‘Accidental Death’ In The Context Of Insurance Law?
Share Tweet Plus One Pin It Email Print By: akanksha jain October 13, 2018 6:03 pm Change Font Size The National Consumer Disputes Redressal Commission (NCDRC) had held that insurance claim cannot be denied on the ground of common lifestyle diseases such as diabetes or hypertension but that does not give right to the insured to suppress information in respect of such diseases. The commission also reiterated that suppression of any information relating to pre-existing disease if it has not resulted in death or has no direct relationship to cause of death, would not completely disentitle the claimant from claiming the insured amount. NCDRC member Prem Narain said so while deciding the appeal of one Neelam Chopra, a resident of Mohali in Punjab. Her husband had taken an LIC policy in the year 2003 and after being medically examined by a panel of doctors, he was issued the policy w.e.f. 25.12.2002 to 25.6.2026. The husband of the complainant died on January 7, 2004 due to … [Read more...] about Insurance Claim Can’t Be Denied On Ground Of Common Lifetstyle Diseases But Insurer Should Not Hide Info, Says NCDRC [Read Order]
In Chief Counsel Advice (CCA) memorandum 201511021, the Internal Revenue Service (IRS) considered whether a contractual arrangement transferring foreign currency (FX) risk to a captive insurance company resulted in insurance for federal income tax purposes. After considering the tax definition of insurance, the IRS concluded that the arrangement should be taxed as a foreign currency derivative—rather than insurance—based largely on its view that the FX risk at issue did not qualify as an “insurance risk.”The FX ArrangementThe Taxpayer Group in the CCA is described as a group of related entities engaged in the design, manufacture, etc., of products and services in the environmental and life sciences sectors. The Taxpayer Group includes a regulated state law captive insurance company (“Captive”) that provides coverage to the Taxpayer Group for a variety of risks.Members of the Taxpayer Group engaged in sales and purchases in multiple currencies and … [Read more...] about Distinguishing Between Captive Insurance and Related Party Derivatives: Chief Counsel Advice Memorandum 201511021
Updated: After class action lawyer Thomas Mellon Jr. was diagnosed with pancreatic cancer, he told staffers that the Doylestown, Pa., law firm he founded would cease to operate, according to allegations in a lawsuit.But a different partner in Mellon, Webster & Shelly apparently believes the decision isn’t his to make. The suit filed by Carol Shelly says the law requires Mellon to transfer his shares in the three-partner law firm because he is disabled, according to Phillyburbs.com.The complaint also alleges that Mellon changed a $1.5 million life insurance policy so that his estate, rather than the law firm, is the beneficiary, the story says. Shelly says the policy was purchased when the firm obtained a $5 million line of credit.The third partner in the firm is Mellon’s wife, Sara Webster. The suit seeks the removal of Mellon and Webster as officers in the firm. “Mellon, Webster and Shelly are deadlocked in the direction and management of the business and … [Read more...] about A Partner’s Cancer Battle Results in Suit over His Law Firm Shares and Insurance Proceeds