Buy Life Insurance on a Stranger?

A jury in California is the question of two elderly women accused of befriending a few homeless men, among the millions of dollars in life insurance on them, and then to kill them. The prosecutors supported that the women who gathered in the vicinity of $ 3 million from insurance policies and seek more than they were arrested. Murder by side, you are entitled to purchase a life for someone else, and then hope their death?
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No, if he is a stranger. A federal law adopted in 1945 allows the regulation of insurance for the governments of the Member States so that the rules vary from one place to another. In most cases, a separate policy * must demonstrate that he or she is dependent on a certain type of person whose life is saved. This is called in the economy as the "insurable interest" doctrine and has origins in the common practice. In California, usually in the official books and the subsidies insurable interest between an owner and every person from whom it depends, wholly or partly by the education or support ", as well as other relations, a financial contribution, as if the insured needs the money for his own policy.

The two California women are suspected of being tested, requires a certain ratio on the two homeless people who had asked, as a parent if he has a body. A jury originally the Bundesrat, the couple with the attempts to defraud insurance companies, but this case was rejected when the state has the accusations of murder.

The doctrine of insurable interest of the insidious schemes in England in the mid-18th Century. When the British Parliament adopted the law on life insurance in 1774, he acknowledged that the possibility that a foreigner in the creation of an "evil nature of the game" that enables a person, the death of 'another.

The scheme assigned Ladies in California is anything but original. A 2002 article in Nevada Law Journal reminiscent of a 1954 case in which a man named Henry Lakin have a transitional period from the Second World War, the previous name "Harvey W. Hankinson strange business and jobs as quickly as a business. Lakin police have an Life on Hankinson and he subsequently agreed on hunting in Pleasant Hill, Mo., from which only Lakin back alive. There was not enough evidence to prove that Hankinson were murdered, but the insurance company was in a position to focus on the interest and not insurable, because the doctrine of politics.
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Most cases of fraud are not so clear. Many insurance companies and senior representatives of the groups are concerned about "foreign" or "foreign-off" of life in which investors approach a person and their bid in cash or other incentives to a plan. In return, about the plan for investors after a delay of two years, allowing sufficient time for rock regulations of the industry. It is not clear if this scheme is, since older people are, in fact, while in life insurance on themselves, not does not work in the insurable interest rules.

You have a question about the news today? Ask the Explain.

Explain thanked the California Department of Insurance, Robert Jerry from the University of Florida Levin College of Law, Mike Nolan and Susan Humphreys of the National Conference of Insurance Legislators and the food tax adviser Anthony.