Can Named Insured Revoke Insurable Interest?

[Cyberherbalist]

Semi-hypothetical question: Assume a husband has had an insurance policy on his wife's life in a substantial amount, with himself as beneficiary and owner. Assume further that the marriage is beginning to break up and she has reason by virtue of his behavior to believe that her husband might take some action causing her death. Does she have any right to revoke her permission to be the named insured (revoking the "insurable interest")?

 

[!CuriousGeorge!]

Nope. She is not a party in the contract.

 

[justalayman]

an "insurable interest" is not created by someone giving permission. It is a fact based situation. Once a policy is purchased, even if the facts change and there is no longer an insurable interest, the policy can be continued.

The wife doesn't have to give permission to purchase a policy on her due to the insurable interest. Now, if SHE was the beneficiary, there may be a possibility of her disallowing a change of beneficiary due to the marital relationship but other than that, she has no control over the policy.

 

[Betty]

Since he's the owner, any changes can only be made by him. The policy will continue in force as long as the premiums are paid which are generally paid by the owner.