Has Someone Taken A Policy Out On You Without Your Knowledge?





A brief review of various Internet sites, newspaper and magazine articles, law journals
and trade publications will show that, in the past, it has not been at all uncommon for life insurance professionals to misrepresent the terms, conditions and/or benefits of their policies. Many of the larger insurance companies have paid huge amounts of money in fines and restitution to law firms, regulatory agencies and policy holders who have discovered, too late, that their best interest was not given the priority it deserved.

Over the past sixteen years, I’ve discovered that Life Insurance Fraud is not a term specifically earmarked for these agents and/or their companies. This beast can take many different faces and affect anyone at any given time. It has the potential to devastate friendships, families, relationships, and the inherent trust most of us have for our fellow man. - all for the sake of greed? Possibly, but there are other avenues one must consider. Nevertheless, the potential trouble some insurance consumers bring upon themselves seldom ceases to amaze me.

Here are a few of the actual questions I’ve received in just the first few months of 2006.


---I’m concerned that my oldest brother has taken out a large life insurance policy on our elderly parents without their approval or knowledge. I feel this way because my father never believed in life insurance. Will my brother make money off of them if something happens?

---I am concerned that another family member has obtained a large life insurance policy on my father without his knowledge or authorization. Can this be done?

---Is it possible for someone close to you to insure your life even though you told them no?

---Can someone buy a large policy on a person without a medical check-up?

An agent was contacted by a young lady-friend who asked about purchasing a policy on her parents. Her father is in his late 50s, smokes 2 packs a day, drinks heavily and occasionally shares his wife’s blood pressure medication. Her mother only drinks a little, only smokes 1 pack a day, her high blood pressure is controlled by medication and she takes hormone replacement medication daily.

The daughter wants to purchase a $250,000 policy on her dad, a $50,000 policy on her mom and cannot afford a huge premium. Can the agent help her?

(Those of you with experience in field underwriting who are laughing at this point should stay with me on this.)

The agent met the daughter at her parent’s home. Here he completes the applications (without disclosing that either of the proposed insured smoke, drink alcohol or take medication), has the policy illustrations signed and submits the whole package to underwriting the very next day. A medical exam is scheduled seven days later at 7:30 PM.

On the day of the exam, the agent and his 17 year-old daughter show up at mom and dad’s house at 6:45 PM. The agent informs them that both will have to give urine samples and only the husband will have blood drawn. Just prior to the examiner’s arrival (she called to let them know she was on her way) both the agent and his daughter took turns going into the restroom and “helping out” with urine samples of their own. A short time later, the examiner completed the medical questionnaires and subsequently asked for each of them to “fill the cup.” The husband went into the restroom, closed the door and filled the vial with the sample the agent had left on the edge of the sink. The woman did likewise with the sample left by the young lady. After taking a blood specimen from the man and completing her paperwork, the examiner left.

New policies were issued approximately three weeks later. The husband was given a Preferred Non-Smoker rating, the wife was rated Standard Non-Smoker and the agent made a first-year commission of approximately $2,200.

Note: The above is a true story. When the husband and wife were deposed almost three years later, we could not believe how this agent could have been so bold. I discovered shortly thereafter that this agent was in a class encompassing the top 15% of the very best (most productive/highest incomes) agents in the nation. As I’ve stated many times; when it comes to fraud, an agent’s (or insured’s) imagination is the only limitation.

---Is it possible for anyone to purchase life insurance on an elderly person with the purpose of collecting upon the death of that person without that person having any knowledge of it?

---Can medical examinations be forged?

---I have reason to believe my ex-wife has taken out a life insurance policy on me without my permission. How do I find out if she has?

---After my dad took out his insurance policy, someone called to ask him some questions about his health and job. My dad was not home when the lady called and my mom made my brother act like he was my dad and answer the questions. Is this against the law?

---My ex-boyfriend and I took out insurance policies on each other almost two years before we separated. We’ve been apart now for almost a year and I canceled his policy when I met someone else. I don’t think he ever canceled my policy and I don’t want him to get anything if something happens to me.

---Can someone take your ID, marry a person, go file a life insurance policy on me, and then kill me?

Also, is there a country-wide registry where I can see if a policy has been filed on me?

I live in Georgia. Let's say someone stole my ID, went Idaho, and took out a policy on me. Can this be done?

Please get back to me on this it is very , very important.

Yes, someone can take your wallet. If they use information contained therein to assume your identity, it is considered Identity Fraud and is illegal.

Another person could assume your identity but, in order to get married, I'm fairly certain they would be required to produce several forms of positive ID. A blood sample test may be required, certificate of live birth, Social Security information, etc. If you suspect that someone may have been married using your personal information, you may want to research that particular State's requirements and/or notify the authorities.

Yes, it is also possible for someone to purchase life insurance on you without your knowledge or consent. It is also possible for someone to take your life. Homicide, however, ranks even higher on the list of things Thou Shalt Not Do than identity theft.

If someone stole your wallet Georgia, it would have been wise to report this to your local police department right away. You should have also notified any credit card companies, your bank, Social Security, Dept. of Motor Vehicles, labor union, etc.

I think my ex-husband took out life insurance policies on our two children without my permission. Who can I call to find out if he did?

---Who would I contact to find out if a friend of mine has had life insurance taken out on him?

---How do I find out if a life insurance policy has been taken out on my brother without his knowledge or permission?

The purchase of a life insurance policy using altered, forged, or otherwise falsified signatures is against the law. Although the statutes or code in your area may differ slightly, CA Penal Code #470 is quite specific:

Every person who, with the intent to defraud, knowing that he or she has no authority to do so, signs the name of another person or of a fictitious person to any of the items listed in subdivision is guilty of forgery. And forgery is punishable by law.



Should someone profit from the death of another without their knowledge or permission?

Should family members benefit from another family member's death without their approval?

Should family members who are less than completely honest reap a benefit they don't deserve?

Unfortunately, this seems to be happening more and more often. Possibly due to our society's heightened level of awareness, fraud is becoming more recognizable than ever before. In these, and cases just like them, I've successfully worked with individuals and/or their attorneys to resolve concerns about "bogus" insurance policies.

If you have questions or concerns about life insurance policies purchased without permission, help is available. Life insurance policy searches can be conducted and, in some cases, lost policies found.

Feel free to send me an e-mail. We can disuss your options and hopefully put your mind at ease.