Research On The Legal Issues Of Beneficiary In Insurance Contract

This Article is made up of five parts, concerning about the insurance beneficiary system. Applying the methodology of Theoretical Analysis,Comparison Analysis and Case Analysis to the article, the author probes into the problems about the Designation of Beneficiary,Changing of Beneficiary and Disqualification of Beneficiary. Aiming at the irrationality in the current Insurance Law, the article tries to puts forward some proposals to make the insurance beneficiary system more reasonable, scientific and systematic.Part I : To get at the root of the matter, the article analyses the theory of"Contract for the Third Party"in Anglo-American legal systems and civil law system, and discusses the legal status,benefit and duty. The beneficiary refers to the specific person who is entitled to claim and acquire insurance indemnity when the insured dies. Also the beneficiary has the"right to learn the truth"and"right of action". The right of beneficiary is always defined as"expective right", however, the point is not rational. It is only applicable in the cases of"irrevocable beneficiary", whereas in the cases of"revocable beneficiary", the beneficiary takes the"benefit status"only. According to the principle of"good faith", the beneficiary should burden some collateral duty. The effect of the action taking by the beneficiary should be limited, not as the Insurance Law mentioned. Part II : When the beneficiary is designated in different ways, the legal sense differs. It is the insured who has the right to deal with the benefit of the insurance contract. Though the policyholder is entitled to designate his beneficiary, the insured has the final word, however, the right should be limited proper in order to protect the benefits of related parties.Part III: Comparing with overseas matured insurance legislation, besides the cases of"revocable beneficiary", the current Insurance Law should introduce into the cases of"irrevocable beneficiary". It is only the insurant who has the right to alter the beneficiary, however, in some exceptional cases, the right of changing beneficiary at will should be limited by law. An insurance beneficiary may be changed in writing and the change shall take effect from the date when the insurer receives the notice in written form with some exceptional cases. The principle also applies for the way of testament.Part IV: The provision about"disqualification of beneficiary"in current law is irrational and incompatible, however, the legislation in other countries is mature. The article analyzes and compares four typical styles of legislation. To balance the benefits between the insurer,the insured(includes his heirs) and the beneficiaries, the article proposes to unify the style of"Elimination of Beneficiary Theory"in provision 64 and 65 of the current Insurance Law, that is when a beneficiary is thus disqualified, the proceeds go either to the remaining beneficiaries or, if none, to the estate of the insured, just as if the disqualified beneficiary had predeceased the insured.Part V of the Article tries to breakthrough the traditional opinion of"Beneficiary only exists in Life Insurance Contracts". Take the"Mortgage Insurance in House"for example, three different opinions focus on"The Validity of Beneficiary in Property Insurance Contracts". According to the principle of"Autonomy of the Will", the article protests that"It is valid that Beneficiary exists in Property Insurance Contracts".