INSURANCE – Death Benefits; Insurable Interest; Pecuniary Relationship 

Posted: 1:00 am Mon, February 8, 2010
By admin
Tags: Insurance

Where an insurer sought a declaration that a life-insurance policy was void because the couple who were named as owners and beneficiaries of the policy did not have an insurable interest in the insured’s life, summary judgment for the insurance company is reversed because the couple showed that they had a reasonable expectation of a pecuniary benefit or advantage if the insured, who was a long-time family friend, remained alive.

“Although the sort of benefactor-type relationship between Romig and the Markses has not been the subject of a prior Missouri case, other jurisdictions which follow the same common law rules as Missouri have recognized an insurable interest under analogous facts…Thus, if the relationship between them satisfies the general test for creating an insurable interest (i.e., any reasonable expectation of pecuniary benefit or advantage from the continued life of another), we conclude Missouri courts would recognize it.” Judgment is reversed and remanded.