LGBTQ members who own life insurance policies against their life can now designate their partners as beneficiary. This is according to the legal opinion issued by the Insurance Commission (IC) to the UP College of Law Gender Law and Policy Program.
LGBTQ Members with life insurance policy
More and more members of the lesbian, gay, bisexual, transgender and queer community may designate their partners as insurance beneficiary for the life insurance policy on his own life.
Professor Battad, program director of the UP College of Law Gender Law and Policy Program, asked the Insurance Commission for guidelines on the rights of LGBTQ members. Such request is with respect to designating a beneficiary. The request for legal opinion focuses on the insured LGBTQ members’ right to designate their domestic partners as life insurance beneficiaries.
The legal opinion
Good news! In response to Professor Battad’s request, Insurance Commissioner Dennis Funa expressly stated that the exceptions to designating beneficiaries are enumerated in Article 2012 in relation to Article 739 of the Civil Code.
As such, those exceptions do not provide for any legal impediment towards the designation of domestic partners of LGBTQ members as beneficiary of their life insurance policies.
The Insurance Commission affirms that the insured who secures a life insurance policy on his or her own life may designate any individual as beneficiary.
The Amended Insurance Code does not expressly provide for matters on who shall be designated as beneficiaries. Section 11 of the Amended Insurance Code provides that the insured may designate any beneficiary to his insurance policy.
Section 11. The insured shall have the right to change the beneficiary he designated in the policy, unless he has expressly waived this right in said policy. x x x”Section 11 – Amended Insurance Code
Some LGBTQ members were refused by insurance agents from designating their domestic partner as beneficiary. Such refusal is due to “lack of an ‘insurable interest’ of the domestic partner on the life of the insured.
Commissioner Funa said that insofar as life insurance is concerned, it is enough that the person securing the life insurance policy has an insurable interest in the life of being insured.
The exceptions contained in Article 2020 in relation to Article 739 are as follows:
- Between persons who were guilty of adultery or concubinage at the time of donation;
- Those made between persons found guilty of the same criminal offense
- Those made to a public officer or his wife, descendants and ascendants, by reason of his office.
LGBTQ members may present this legal opinion from the Insurance Commission if an insurance agent would refuse them from designating their partners as beneficiary.