1. Free Legal Help, Legal Forms and Lawyers. TheLaw.com has been providing free legal assistance online since 1995. Our most popular destinations for legal help are below. It only takes a minute to join our legal community!

    Dismiss Notice

Life Insurance

Discussion in 'Consumer Fraud & Scams' started by AC2018, Apr 14, 2018.

Thread Status:
Not open for further replies.
  1. AC2018

    AC2018 Law Topic Starter New Member

    Messages:
    6
    Likes Received:
    0
    Trophy Points:
    1
    Jurisdiction:
    Texas
    Is it fraud for grandparents who have no financial interest to take out policies on all my children and putting themselves as the beneficiary? There is no contact between the parents and the grandparents. When asked about the policies via text, there was a read receipt but no reply confirming that they have active life insurance policies. There is no intent to make me, the parent aware of the policies. The insurance company has told me to send a cancelation request for the policies with the children’s birth certificates to prove I am the legal parent.
     
  2. adjusterjack

    adjusterjack Super Moderator

    Messages:
    9,267
    Likes Received:
    3,021
    Trophy Points:
    113

    No, not at all.

    In fact, it's quite common and legal.

    What's likely happening is that the grandparents took out policies that accumulate cash value where they pay the premiums for 20 years or so, the policies get fully paid up, and they give the policies as gifts when the children are adults.

    That's a good thing.

    So I don't know why you are getting your skirts in a twist over it. I suggest you leave it alone. It's really none of your business what the grandparents do with their money and it's no different than if they just put money into a savings account in trust for the children.

    Whatever your beef is with the grandparents, don't penalize your children about something they will be happy to have when they become adults.
     
    Disabled Vet and army judge like this.
  3. AC2018

    AC2018 Law Topic Starter New Member

    Messages:
    6
    Likes Received:
    0
    Trophy Points:
    1
    I am fully aware that the policies should turn over at the age of maturity for the kids benefit. However, his history of taking out child whole life policies (on me and my sister) were never turned over to us. We were never made aware of these policies and I am not even sure what happened to them. It should be a positive gift for my children, however if one of my children were to pass, he would not use the money to bury my child and it then would become a monetary gain for him and his wife. That is insurance fraud.
     
  4. AC2018

    AC2018 Law Topic Starter New Member

    Messages:
    6
    Likes Received:
    0
    Trophy Points:
    1
    I will also add that he has a history of being found guilty in court of Statutory
    Fraud and being penalized 780,000 in damages. I find it a bit strange he took out the last policy on my baby daughter who is one month old that he’s never met on the same day that I told him to have no more contact with me or my kids. Which he gladly agreed to, his exact words were “Excellent. Thank you.”
     
  5. cbg

    cbg Super Moderator

    Messages:
    8,562
    Likes Received:
    1,703
    Trophy Points:
    113

    It's still not fraud.
     
  6. adjusterjack

    adjusterjack Super Moderator

    Messages:
    9,267
    Likes Received:
    3,021
    Trophy Points:
    113

    It's not.

    I put the question to life insurance agents on an insurance website and confirmed that consent of the parents is not required by life insurance companies.

    The grand parents can buy, own, and be beneficiaries of the childrens' policies without your consent. It's their money.

    I find that hard to accept. The insurance company has a contract with the buyer of the insurance and cancelling it without the buyer's consent is breach of contract. But if you can get an insurance company to do it I don't see what good it will do you as the grandparents can easily go to another insurance company, take out new policies, and just not tell you about them.
     
  7. army judge

    army judge Super Moderator

    Messages:
    33,853
    Likes Received:
    5,500
    Trophy Points:
    113

    A person (or an entity) can buy life insurance on anyone in which they have an insurable interest.

    You can buy life insurance on your spouse, your children, your grandchildren, great grandchildren, etc...

    A business can buy life insurance on their key employees.

    A partner in a business can buy life insurance on her business partner.

    This premise is as old as our civilization and its codification of laws.
     
  8. AC2018

    AC2018 Law Topic Starter New Member

    Messages:
    6
    Likes Received:
    0
    Trophy Points:
    1
    Yes I know all of this. You aren’t understanding what I am saying is insurance fraud. If they have no contact with the children they really have no insurable interest with them, I also hold insurance policies on my children, therefore there’s is even less of an insurable interest because I hold policies. If they have no intent of using the hypothetical insurance payout
    On my child for that purpose and it is primarily for their financial gain then that would be considered insurance fraud. Beneficiaries can always be contested also at the time of death. I have spoken with life insurance agents who have said that this situation is not typical when the intent is to help the parents at the time of death of their child, in that case the beneficiary is usually the parent, not the grandparent. You all are only touching the surface of what I am saying. All of your posts are common knowledge and not what my question was pertaining to.
     
  9. army judge

    army judge Super Moderator

    Messages:
    33,853
    Likes Received:
    5,500
    Trophy Points:
    113

    You want better information pay for, hire a lawyer.

    Free advice is just that FREE.

    YOU get the value you expend, free gets free.

    Apparently the authorities in your jurisdiction don't care.

    If you're adamantly opposed to the actions of their grandparents speak to a lawyer and sue them, talk to your elected officials, complain to law enforcement, talk to insurance company officials, or learn to live with things you can't change.

    Most of what goes on in this country today I dislike, so I try to stay inside my home or on my my ranch where I make my own laws.
     
    AC2018 likes this.
  10. cbg

    cbg Super Moderator

    Messages:
    8,562
    Likes Received:
    1,703
    Trophy Points:
    113

    Taking out the policy is not fraud.

    Failing to provide the proceeds of an eventual payout as indicated by the terms of the policy might be.
     
    army judge likes this.
  11. adjusterjack

    adjusterjack Super Moderator

    Messages:
    9,267
    Likes Received:
    3,021
    Trophy Points:
    113

    Yes, I do understand what you are SAYING. And what you are SAYING is only your perception of what is happening and is not supported by LAW.

    The grandparents may have an entirely different story as to their intent for taking out the polices. But even that doesn't matter because the consent of the parents is not a legal requirement that any life insurance company has to comply with.

    Of course it is. You're just not getting it. You want to stop the grandparents from taking out policies on your children and it's not going to happen.
     
  12. AC2018

    AC2018 Law Topic Starter New Member

    Messages:
    6
    Likes Received:
    0
    Trophy Points:
    1
    I did make a police report and have spoken to the civil court and they are calling me back this week, was utilizing this website to see if any useful information could come of it thanks.
     
  13. zddoodah

    zddoodah Well-Known Member

    Messages:
    4,851
    Likes Received:
    1,346
    Trophy Points:
    113

    No, and a grandparent certainly has an insurable interest in a grandchild's life. However, the insurer should notify the insured (or, if the insured is a minor, the insured's parents), which apparently has been done.

    And there you go. No issue.

    Are you saying that "adjusterjack's" speculation that these are whole life policies was correct?

    It most certainly is not. Even if it were, by contacting the insurer and having the policy cancelled, you've done everything you can do. If the insurer believes that insurance fraud was committed, it can pursue the matter through the Department of Insurance.

    What does and doesn't constitute an insurable interest is a matter of law. It's not something about which you can have an opinion. Are you aware of any Texas statute or case decision that says or held that, if a grandparent has no contact with a grandchild, he/she has no insurable interest in the child's life? I doubt any such statute or case exists, but I would certainly be interested to know if such a statute or case does exist.

    That has nothing to do with anything.

    No, and how do you know what his intent is?

    Huh? Life insurance policies don't dictate what the beneficiary(ies) must do with the proceeds.
     
  14. AC2018

    AC2018 Law Topic Starter New Member

    Messages:
    6
    Likes Received:
    0
    Trophy Points:
    1
    Actually yes they do. You can’t not just take out an insurance policy on anyone you want to get rich off of it. There are laws preventing this. Go research.
     
  15. army judge

    army judge Super Moderator

    Messages:
    33,853
    Likes Received:
    5,500
    Trophy Points:
    113


    Rich a relative, entirely meaningless word, because to some $100,000 is rich, to others $1,000,000 is peanuts.

    Insurance companies certainly make profits off of your premiums, not your death and the payout.

    Actuarial tables help insurers calculate their risks and your costs.

    Make money, yes, and its perfectly legal!

    Can I Sell My Life Insurance Policy For Cash?

    Can I Sell My Life Insurance Policy? | Coventry Direct

    How to Make Money from your Life Insurance Policy - The Simple Dollar

    Before Death Do Us Part: Selling Your Life Insurance Policy
     
  16. adjusterjack

    adjusterjack Super Moderator

    Messages:
    9,267
    Likes Received:
    3,021
    Trophy Points:
    113

    That statement is actually true. There are laws, company policies, policy provisions, all designed to prevent insurance fraud.

    But not within the context of a grandparent buying a policy on a grandchild.

    You can keep banging your head against the wall until the cows come home but your hostility toward the grandparents isn't going to change that.

    No need to keep kicking this dead horse.

    Thread locked.
     

Share This Page

Thread Status:
Not open for further replies.