Employment Agreement with Insurance Clause

[Sharkbelly]

What is the name of your state? Louisiana

I have a clause in an employment agreement that an employer is asking me to sign and wondering if someone can give some advice. Below is the clause:

19.The Employee is a valued and integral part of the Employer and the loss of his services to the Employer would cause sever hardship and economic loss to the Employer. The Parties agree that the Employee will:
A. permit the employer, at any time and from time to time, at its option
and at its cost, to insue his life under a policy or policies of life insurance
issued by a life insurance company or companies selected by the
Employer.
B. name the Employer as sole beneficiary in the insurance policy;
C. do any and all acts and things, and execute and deliver all or any
insturments, papers and document, which will be reasonably demanded
by the Employer or the insureer for the purpose of applying for, obtaining
maintaining, canceling, converting, reinstating, or liquidating such
insurance policy or policies, or collecting the proceeds from such
insurance policy or policies including but not limited to, such as will be
necessary to vest in the Employer and any and all rights, powers,
privileges, options or benefits to and under such insurance policies;
D. submit to all necessary physical or other examinations required to effect
such policies.


I have never seen anythig such as this in a employment agreement. Is this ethical? Is it legal to ask this of an employee? Why would a employer want this?

Thanks for your help and opinions.

Grady

 

[cbg]

I am going to make a guess here. Please tell me whether or not I am correct and if so, which of my two guesses is the correct one. It makes a difference how to answer your question.

1.) You work for Wal-Mart.
2.) You work for a company other than Wal-Mart, but are in a mid-to-highly placed management position.

If both guesses are wrong, without naming your employer, give us a general idea of the size of your company, the industry you work in, and where on the food chain of corporate organization you fall.