Is it Legal for Your Spouse to Cancel Insurance Without Your Knowledge?
There is nothing wrong with purchasing an insurance policy for your spouse so long as your partner has full knowledge of it. However, if you cancel such policy without him or her knowing about it, then this will raise a whole range of questions including suspicions from your partner.
Laws on cancellation of insurance policies for spouses might not be similar in every state. However, it is common sense that this might open the door towards “insurance fraud”. It is like placing a bet on a person’s death. If your spouse is paying life insurance plan for you, then one thing is for sure: you cannot cancel it because you are not in a position to do so. The usual provisions under law is that only the insured person can sign the application and in most cases the insured is subjected to medical examination based on the amount of insurance being requested. But there are exceptions.
Usually people obtain life insurance for the following reasons: practicality, love or a divorce order. And if your partner is practical and if he or she really does love you, then he/she will not for any reason, get you an insurance policy and cancel the same behind your back.
In cases concerning insurance on accidental death, the spouse cannot cancel such policy as she is not the policyholder. The insurance agent will first try to talk to the other spouse to get hold of some details concerning the cancellation of the policy.
On the other hand, if you can show acceptable proof that the insurance policy was inappropriate or invalid, you can take this matter further. The circumstance is true in case spouses are planning to get a divorce. If valid reasons are shown, you can request for the case to be reviewed by an Ombudsman, or an Adjudicator who will be the one to make the initial ruling. The general rule is that, a husband or the wife has no authority to terminate or revoke the insurance policy. However, each one has the right to cancel or terminate the premiums whenever desired.
In case of legal divorce proceedings, spouse person, upon cancelling the insurance policy of his or her spouse without the latter’s knowledge may need to present some legal documents, say an order from an appropriate court for the coverage to be legally removed.
Finally, to save the other spouse from fear that the ex-spouse might drop any insurance policy even before the divorce is final and executory, the offended spouse may obtain an order disallowing the other from making diminutions to existing coverages. Cancellation of your spouse’s insurance policy may not only upset your spouse but may result in further legal proceedings on your part.