Owner's spouse must be 50%(+) on Beneficiary?

[WinoBlues]

State of California. = Community property state.

This is a FE app so I will posy it here. However, I assume the same rule would apply for any Life Insurance.

So I submitted an app Friday. Insured, Daughter is owner payor.
Today I get an email that says we need the Owner's spouse to needs to sign off as he is not at least 50% Beneficiary. The owner is 100% her daughter is contingent. Not that unusual. Daughter or son as owner is super regular for me. I do not recall dealing with this because of Bene designation.

Am I missing something.

Call the company in the AM to argue the point but will email the form to her anyway for the signature.

 

[Tahoe Ray]

State of California. = Community property state.

This is a FE app so I will posy it here. However, I assume the same rule would apply for any Life Insurance.

So I submitted an app Friday. Insured, Daughter is owner payor.
Today I get an email that says we need the Owner's spouse to needs to sign off as he is not at least 50% Beneficiary. The owner is 100% her daughter is contingent. Not that unusual. Daughter or son as owner is super regular for me. I do not recall dealing with this because of Bene designation.

Am I missing something.

Call the company in the AM to argue the point but will email the form to her anyway for the signature.

Is it a replacement?

 

[WinoBlues]

Is it a replacement?

Yes.

The owner is the same on both

 

[Tahoe Ray]

Yes.

The owner is the same on both

I'm guessing that's the reason. New carrier doesn't know if spouse was bene on old policy.

Not sure about the rule/law, but as you know, CA has all sorts of crazy regs.

 

[WinoBlues]

I'm guessing that's the reason. New carrier doesn't know if spouse was bene on old policy.

Not sure about the rule/law, but as you know, CA has all sorts of crazy regs.

Probably that. I don't tend to do a lot of replacement. Still going to argue it. Just my nature.

 

[VolAgent]

So don't do a ton in community property states, and almost never replace...

From what I understand, the spouse of the owner has to sign if the owner or owner's spouse isn't at least 50% beneficiary, correct?

 

[titeye]

Is it a replacement?

I’m curious as well. The way I understand your case is that the owner-daughter, although married, is 100% primary beneficiary and her daughter is 100% contingent.
My first thought was that filing a death claim could possibly be the community property trigger, but only if the primary is still married at the time. Then I thought, perhaps it’s because the policy has a cash value feature that makes it community property. Am I completely off base?
If you don’t mind, keep us posted.