Study On The Enforcement Of Cash Value Of Life Insurance Policy

The cash value of the policy originates from the theory of "equilibrium insurance premium",and the equilibrium insurance premium only exists in the life insurance,so only the life insurance policy has the cash value.When the policyholder of life insurance policy can’t pay off the debt due,whether the court can enforce the cash value of its life insurance policy has not been clearly stipulated by the law.In judicial practice,the adjudication results of local courts are different.Because the cash value of the life insurance policy comes from the insurance premium paid by the policy holder and its increment,the return of the life insurance policy cash value occurs in the case of the termination of the insurance contract,and after the termination of the contract,the cash value of the life policy should be restored to its original state,and the object of its return should be the policy holder.As a result,the cash value of life insurance policies is attributable to the insured.The right of the policy holder to return the cash value of the life insurance policy may be regarded as the creditor’s right to the insurer.The claim for the return of cash value of life insurance policy should be based on the dissolution of insurance contract,so its legal nature is a kind of conditional creditor’s right.The law on whether conditional claims can be executed is not specified,but it is clear that the The unexpired claims of the executor can be the subject of execution,and the court freezes the debtors’ outstanding claims,which expands the scope of the court’s enforcement and does not harm the interests of the third party while promoting the resolution of the difficult problems of enforcement.Similarly,the court freezes the conditional claims and,when the conditions are accomplished,deals with the claims due.There is no other damage to the interests of the third party.It is reasonable for the third party to extend the scope of the property of the executed person to the conditional creditor’s right because it is only necessary for the third party not to pay to the executed person.As a result,the cash value of life policies can be enforced.In judicial practice,the execution of the cash value of the life insurance policy by the court,referring to the execution of the bank deposit by the court,is directly substituted for the termination of the contract and the deduction of the cash value of the life insurance policy.There are many problems in this way of execution,and there is no legal basis for the court to cancel the insurance contract on behalf of the court.Due to the lack of legality of the termination of the contract,the authority of the court is adversely affected,at the same time,the legal risks of insurance companies also increase.It is a reasonable attempt for the third party outside the contract to cancel the insurance contract by exercising the right of subrogation.The right of arbitrary discharge of the insurance contract of the policy holder is essentially a right of formation.According to the relevant laws of our country,the object of the right of subrogation is due creditor’s right.The scope is too narrow to protect the interests of creditors.It should be extended to explain that the exercise of subrogation should include the right of formation.Moreover,the right to cancel the contract of the policy holder has no personal property,and the creditor can cancel the insurance contract by exercising the right of subrogation.While it is certain that the cash value of life insurance policy can be enforced,the necessary restrictions should also be imposed on the creditors to prevent the creditors from wanton exercise and excessively damage the rights and interests of the insured and the beneficiaries.Before the termination of the insurance contract,the cash value of the life insurance policy should be frozen to prevent the person under execution from transferring the cash value of the life insurance policy through the termination of the insurance contract.After the court freezes the cash value of the life insurance policy,the creditor may file a subrogation action with the court to rescind the insurance contract,and at the same time give the insured and the beneficiary the opportunity to intervene in the insurance contract.To pay money equivalent to the cash value of a life insurance policy and become the new policyholder of an insurance contract.When the original insurance contract continues in force,the court shall lift the freezing of the cash value of the life insurance policy and terminate the action of subrogation.If the insurer or beneficiary waives the right,the subrogation action of the creditor shall continue.After the termination of the life insurance contract,the court may waive the execution of the executed person according to the economic situation of the executed person and reserve the most basic cost of living for the executed person and his family.So that the interests of all parties to achieve a balance.