Can the insurance agent make himself the sole beneficiary on the policy that sold to family member?

My brother sold my dad and stepmother a life insurance policy. He name himself as sole be beneficiary. Then on my stepmom’s, she told him who she wanted as her beneficiary but he named himself beneficiary on her policy also. I’m just wondering how legal that is.

Asked on May 16, 2017 under Insurance Law, Virginia

Answers:

S.L,. Member, California Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

Your brother has a conflict of interest selling a life insurance policy to your dad and stepmother and naming himself as sole beneficiary.
Your brother has committed fraud by naming himself as sole beneficiary when your stepmom wanted someone else as beneficiary.  See below for action your stepmom should take.
Your dad and stepmother can file a complaint with the insurance agent licensing board.  They also should contact your state's insurance commissioner.


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