Legal Question in Insurance Law in Virginia

policy disappears
My husband and I kept a policy up on a deceased mans stepchild that amounted to 5,000. This man paid on this policy for years. After not recieving the policy premieums I called the insurance company and they said the policy went to the person insured. Was we supposed to be notified of this change.
Stepfather policy holder dies
stepchild insured for 5000
policy went to stepchild

Asked on 4/12/02, 10:51 pm

Michael Hendrickson Law Office Michael E. Hendrickson

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Re: policy disappears

If you were neither the owner of the policy(paying

the premiums doesn't necessarily make you the owner), nor a named beneficiary under the policy,

the insurance company would have no obligation to

notify you of anything, including a payoff to the named beneficiary.

The scenario that you haver described quite aptly fits the description of a predator insurance

company which collects premiums from poor and unknowlegeable people on small policies over a

period of many years, and then liquidates the

policy after having collected far more than they ever pay out.

Answered on 4/13/02, 11:46 am

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