Skip to main content

Fraudulent Life Insurance Policy Created in My Name Without My Knowledge

Los Angeles, CA |

My brother-in-law who was staying at my house for a couple of years worked as an insurance agent. I discovered by looking at some papers he left behind when he moved out that he created a life insurance policy in my name without my knowledge and forged my signature. I called the insurance company and they told me the policy was active for a year (was cancelled the same month he moved out). Premium was paid in cash. To avoid anyone calling me, he used his phone number on the application. I am not sure why he did this--don't know if he was just after commission or was planning to do harm to me, as he put his sister (my now ex-wife) as the beneficiary. I don't know what to make of this or what my legal rights are.

+ Read More

Attorney answers 6

Best Answer
Posted

Are you on good terms with your ex-wife? If so, call her and ask if she knew anything about this. Perhaps you should also call your brother-in-law and ask him point blank what this is all about. See what he says.

It was fraudulent for him to take out a policy in your name and forge your signature on the policy, but as other attorneys have pointed out.....what are your damages? My concern would be whether he opened another policy after the one you discovered had lapsed. I'd ask the insurance company to add it to their SIU listing. If after talking to your brother-in-law you have concerns that he might wish to do harm to you, you should report it to the police.

This response is provided solely for informational purposes. It should not be construed as "legal advice" and does not create an attorney-client relationship.

Asker

Posted

Hi Wendy. Thanks for your response. If the policy wasn't cancelled, what legal action could I have taken? By the way, I am not on good terms with him or his sister and he is no longer employed at that insurance company--most likely for other fraudulent reasons.

Wendy Marie Schenk

Wendy Marie Schenk

Posted

If you had made this discovery when the policy was still in effect, you would contact the insurance carrier to let them know about the fraud and that the policy should be terminated. The carrier would likely also have assigned it to their SIU ("Special Investigations Unit") to investigate whether your brother-in-law had set up other fradulent policies. While it sounds like you would be able to show he committed a fraud (against you and/or the insurance company) it doesn't sound like you have suffered damages. People who have had their identity stolen often have damages such as damage to their credit rating or else they are pursued by collections agencies for bills their imposter racked up. Those are examples of damages. It doesn't sound like you have suffered any adverse effect from this, minus probably being freaked out as to what your brother-in-law's motive and/or intentions were. You might want to review your credit report just to make sure their isn't anything on there suggesting that your brother-in-law used your personal information to assume your identity in other ways besides establishing this policy in your name. If he opened up credit cards using your name and info, you might have an action against him if it has adversely affected your credit, etc. You could report this matter to the police, but I'm going to guess they might say there is nothing they can do since the policy is now canceled. This response is solely for informational purposes and should not be construed as "legal advice," nor shall it create an attorney-client relationship.

Asker

Posted

Thanks!

Posted

What he did may be wrong, but what are your damages? The premiums were paid for and the policy is now cancelled so I am not sure how you were harmed in any way. The law does not allow compensation for possibilities or “may have” or “could have” type situations.

Why don’t you call your sister and see if she knows what was going on at that time?

Good luck.

DISCLAIMER: David J. McCormick is licensed to practice law in the State of Wisconsin and this answer is being provided for informational purposes only because the laws of your jurisdiction may differ. This answer based on general legal principles and is not intended for the purpose of providing specific legal advice or opinions. Under no circumstances does this answer constitute the establishment of an attorney-client relationship.

Asker

Posted

I am no longer talking to his sister. Is there something I can do to find out what the potential damages are? Any idea why he might have done this? I already have life insurance with coverage 10 times the amount of the amount of the policy he created, so he certainly wasn't trying to protect his sister.

Posted

You can report him to the Department of Insurance in CA. Since the policy was cancelled, you cannot pursue a lawsuit now.

Posted

Fortunately, this matter ended. It leaves me with the impression that your wife's brother didn't think you adequately took care of his sister. If you haven't already, perhaps you should buy some life insurance so that others won't have to commit fraud to give her some modicum of protection.

The above response is general information ONLY and is not legal advice, does not form an attorney-client relationship, and should NOT be relied upon to take or refrain from taking any action. I am not your attorney. You should seek the advice of competent counsel before taking any action related to your inquiry.

Asker

Posted

Mr. Harris, your response is quite inappropriate. I asked this question to gain objective legal insight on the situation, not subjective and judgmental responses that imply that I didn't take care of my wife. For your information, I had over a hundred thousand dollars worth of life insurance and my wife was not in need of any financial help or security. Please have more respect for this site and your profession, and try to to keep your responses in line with a much higher level of professionalism.

Posted

Policy cancelled, so can't pursuit suit now

Posted

Read "Double Indemnity" by James M. Cain and thank your luck stars nothing happened.