Posted by Ravi Gulati | Posted in Financial Planning | Posted on 01-05-2014
Follow up on a Change of Beneficiary Designation Important
The court concluded that Al signed the beneficiary change form in the presence of the broker, that the original copy of the form was sent to the insurer’s agent but had been lost or destroyed in the process. The court said that while Al Cure did not make the necessary changes to the form requested by TransAmerica, this did not affect the validity of the change of beneficiary information. The court concluded that the change of beneficiary form signed by Al Cure met the requirements of the Insurance Act and it was a valid and binding document.
The lesson from this case is that Al’s failure to follow up on the request by the insurer left the door open for Helen to make an argument that Al did not intend to make the beneficiary designation change. The facts of the case remind us that when something remains outstanding a follow up with the client should occur in an effort to prevent arguments of this nature.
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