Life insurance policies have beneficiary designations. While you would think that the stated beneficiary is the party that gets the money, there are times when questions arise. One question is, what if the insured party intended to change the beneficiary, but doesn't make that change with the insurance company? The law in Minnesota creates an argument for the intended beneficiaries to be the recipients of the life insurance policy.
Here is the law. When an insured clearly and unambiguously demonstrates an intent to change the beneficiary on a life insurance policy, this intent should be given effect, despite failure to fully comply with policy requirements, unless prejudice to the insurer would result. ”Lemke v. Schwarz, 286 N.W.2d 693, 694 (Minn. 1979). A change of beneficiary may be properly effected despite the insured’s failure to comply with strict policy requirements if (1) “the insured intended to change the beneficiary” and (2) the insured “took affirmative action or otherwise did substantially all that he could do to demonstrate that intention without regard to whether he complied with the change-of-beneficiary provisions in the policy.” Brown v. Agin, 109 N.W.2d 147, 151 (Minn. 1961).
In one appellate opinion, an insured's letter to his daughter that she was getting all the proceeds from his life insurance policies was enough to award all the life insurance proceeds to that daughter. Short of that, there are still many cases where an express statement of that nature will cause a change in beneficiary, even if the formal papers are not filed with the insurer.
Whether you are in Forest Lake, White Bear Lake, Hugo or Roseville, these principles apply. Intention is the key and proving intent is something I can assist you with to bring about a just outcome to your life insurance dispute.
The material contained herein is provided for informational purposes only and is not legal advice, nor is it a substitute for obtaining legal advice from an attorney. Each situation is unique, and you should not act or rely on any information contained herein without seeking the advice of an experienced attorney. All information contained in links are the property of the linked site.
