Legal Question in Insurance Law in California

Confused about ''life''

Does the primary beneficiary on a life ins. policy remain so

when the employer corporation changes insurance companies

and no new beneficiary form is filled out and the employer

is paying for the policy and the policy has no cash value?

or

Does primary beneficiary on life ins. policy remain so when

the employer (a hospital) is purchased by a corporation

which buys hospitals to manage them and therefor can use the

larger number of employees to purchase items and obtain

better group insurance


Asked on 2/18/03, 3:36 am

1 Answer from Attorneys
Steven Murray Steven W. Murray, APC

Re: Confused about ''life''

Based on what little information you submitted, the answer is yes, the employee's named beneficiary remains the same - the new insurer simply assumes the old contract. But I would check on it, and see what notices the employer gave the employee regarding the changed insurer. Just because the employer was purchased does not mean that the employer changed. The purchase was probably of its stock, being a corporation, so the entity remained the same and it only changed insurers for its pre-existing employee benefits. Get a copy of the beneficiary designation from the new insurer to make sure.

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Answered on 2/22/03, 10:59 am


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