Insurable Interest Question - Life Insurance

[BikerBob]

What is the name of your state (only U.S. law)? Oregon State

A single mother with two teenage children has learned that her ex-husband (divorced six years) has not complied to the divorce decree in which he was to maintain life insurance on himself and his children. The mother has insured the children through her employer and as the ex-husband (now age 50) is without life insurance, she has asked me if she can insure him without medical exam for $250K. She indicated that he had declined life insurance through his employer long ago and is no longer eligible to obtain it through the employer per long-tenured surrender of right.

I informed this woman that I thought she would have no insurable rights in regard to the ex-husband due to the legality of insuring someone you could potentially murder or have murdered. The two parties are not operating a business in which 'key man' insurance is of any factor.

The woman disagrees with me and believes that the legality of divorce decree in which underaged children are involved would allow her to have insurable right at placing life insurance on a former husband. She is Christian and is adamant that the divorce decree (being a legal document) should be complied with until expiration. As the ex-husband refuses to properly insure himself, she believes that she should be entitled to apply premium in his behalf.

I would appreciate anyone's thought on this (legal or otherwise).

Best regards,

Biker Bob

[Dandy Don]

Can the man afford the premiums for the policy or is he just refusing to do it out of spite for the ex-wife?

She needs to be talking to her divorce attorney to see if she can get a revised decree to subsitute some other asset he would have to provide to replace the value of the insurance policy AND she needs to be talking to any life insurance company agent about whether she has insurable interest on the husband.

DANDY DON IN OKLAHOMA (tiekh@yahoo.com)

[ecmst12]

She certainly has insurable interest since he is the father of her children, and presumably he helps pay to support them, which is income she would lose were he to die.

[anroyA2409]

reading your case it seems to me that the husband, in this case, is surely an insurable interest.