Research On The Legal System Of The Beneficiary Designation

Insurance beneficiary is one of special system design in the legal system of insurance. Beneficiary designation has a direct correspondence to the purposes of contract. The subject who has the right to specify beneficiary is chosen between the insurer and the insured in most cases. One of the law choice model is allowing the insurer enjoy the right alone; another is that the insurer and the insured share the right of beneficiary designation. Although insurance legislation in China has some regulations about the right subject of beneficiary designation, the logic of these regulations is vague, after an in-depth analysis. This article starts with the core concepts of the legal system which focuses on the beneficiary designation. The basic principles of the contract law are used to analyze the beneficiary’s legal status. Balancing the purposes of insurance contract, this article will explore the rationality of China’s current legislative model about beneficiary designation.The first part of this article mainly analyses the meanings of insurance beneficiary, being clear with the core concepts of the legal system. This part focuses on the existence scope of insurance beneficiary and whether they should have insurance interest. The existence scope is about that insurance beneficiary is applied to all the insurance contract or just exists in the life insurance contract. The definition of insurance beneficiary is different in theory and in the legislation of all countries. The main reason caused this situation is that they identify different existence scope of insurance beneficiary. Therefore, if we want to determine the connotation and extension of insurance beneficiary, the basic prerequisite is to clarify its existence scope. One of the requirements which affect the implication of insurance beneficiary is whether it should have insurance interest. This argument has impact on the exertion of beneficiary designation.The second part discusses the content and the legal nature of insurance beneficial right. Insurance beneficiary gains beneficial right, owing to the behavior of the insurer(or the insured)’s designation. Who is entitled to endow beneficiary this sort of right is the focal point of the beneficiary designation. Through making clear the content and the legal nature of insurance beneficial right, we could find out its resource by reverse inference. All these will lay the foundation for the right belonging of beneficiary designation in the sections below.The third part induces and analyses the doctrines and the legislations of different countries. These doctrines and legislations have two ways of dealing with the right subject. One way is that the insurer enjoys the right alone; another way is that the insurer and the insurance share the right together. In the first model, which the insurer is the only one subject of designation, the insured merely has a formal consent right on special occasions, without influence upon the efficacy of the insurer’s designation. In the sharing model, both of them have the right to decide which of the third parties could become the beneficiary. When the insurer exercises the designation right, the insured has the consent right which is essential. In this condition, the insured’s consent plays a decisive role in the efficacy of the insurer’s designation. According to that, the insured is the substantially right subject of the beneficiary designation in the sharing pattern.The last part is the core content of this article, which establishes the legal model of beneficiary designation. In the first section, the article identifies the essential right subject of beneficiary designation. With a view to the prevention of moral hazard, the right resource of the insurance premium and the theoretical basis for the existence of insurance beneficiary, it is the insurer and the insured that both enjoy the right of designation. It not only applies the general principles of the contract for the third party’s benefit, but also pays close attention to the special value pursuit of insurance law and the aims of insurance contact. The second section deals mainly with the efficacy of the insured consent which can be divided into two aspects. One is that the insured’s consent has impact on the validity of insurance contract; another is that the insured’s consent exercises an influence on the effectiveness of the insurer’s act deciding beneficiary. The impact should be divided to the life insurance contract with the insured’s death as the insured accident, and the life insurance contract which doesn’t encompass death elements. Some scholars regard the insurer’s designation which have not be confirmed by the insured as an act without definite validity. Some other scholars think that it is an void act. In the view of legislative intent about establishing the insured’s consent, the article holds the view that the insurer’s designation without the insured’s consent is an act without validity. An thoughtful model of beneficiary designation certainly considers the legal status of beneficiary. Out of respecting beneficiary’s will freedom, legislation ought to give the beneficiary a right to refuse.