Business Law

Answer:

DN and CN bought life insurance from the PR insurance company. The provision within the policy stated that, premium need not be paid under insured party being disabled by any means. Later, when CN became disabled, the insurance company did not claim for the rest of the premiums as per provision. Some years later, the company asked CN to convert his term life insurance to whole life, and asked him to pay only for the new policy for a six-month waiting period. Waiver of premium provision was also included under this policy. This led CN to pay premiums at the time he could not afford, as the provision included the clause that CN has to pay premium for the waiting period of six months.
Yes, CN can claim against PR insurance company. The policies should be under the control of the branch managers. Sales managers have no right to convert term insurance into whole life policies. Waiver of premiums should be included and excluded only under the provision of branch manager. Here, no agent can make a change in contract. So, the PR insurance company does not hold any ethical obligation to their customers, as it is the branch manager's responsibility to monitor the actions of their sales managers.

Answer:

Asset protection trust: This is an irrevocable trust, which allows the beneficiary to be on safe zone from the effect of taxation, bankruptcy, etc. Here, the beneficiary of the trust might hold title of the asset. Asset protection trust has a spendthrift clause, which states the creditors cannot sign an agreement for receiving any sort of benefits from the beneficiary of the trust, before the beneficiary receives them.
Asset protection trust is helpful for the beneficiary of the trust. The benefits are as follows:
• Holds an individual's assets free from creditors
• Helps in seeking divorce protection
• Helps in facing uncertain circumstances
In most of the regions this sort of asset protection trust allows the individual to create a self-trust under law statute being satisfied.
A wealthy person can use this trust against an authentic creditor to safeguard the assets. The ethics of an individual is crucial. If the motive is to make money unethically, and to safeguard from lawsuits the individuals can waive the debts of creditor using these sorts of trusts.
If an individual being a state legislator come across the approval of asset protection trust legislation, the advice is to focus on the benefits rather than disadvantages, as disadvantage is linked with the ethical aspects of an individual using such trusts.
An individual having substantial assets can use an asset protection trust to safeguard their property from pitfalls and risks. Sometimes claims are made by the creditors to make money, so deploying in such trusts will significantly reduce the risks.
The life principles to be focused are responsibility, suffering and freedom. These principles linked with ethics put forth points as follows:
• Individuals should focus on their responsibilities before indulging in any activity
• Individuals have the right to defend their sufferings
• Individuals have the freedom to do what is right

Answer:

DN and CN bought life insurance from the PR insurance company. The provision within the policy stated that, premium need not be paid under insured party being disabled by any means. Later, when CN became disabled, the insurance company did not claim for the rest of the premiums as per provision. Some years later, the company asked CN to convert his term life insurance to whole life, and asked him to pay only for the new policy for a six-month waiting period. Waiver of premium provision was also included under this policy. This led CN to pay premiums at the time he could not afford, as the provision included the clause that CN has to pay premium for the waiting period of six months.
Yes, CN can claim against PR insurance company. The policies should be under the control of the branch managers. Sales managers have no right to convert term insurance into whole life policies. Waiver of premiums should be included and excluded only under the provision of branch manager. Here, no agent can make a change in contract. So, the PR insurance company does not hold any ethical obligation to their customers, as it is the branch manager's responsibility to monitor the actions of their sales managers.