Why is it legal for corporations to take out life insurance policies on their employees without their knowledg?

And able to name themselves as the beneficiary

I couldn't take one out on you because i would have something to gain from your demise

Federal law says "In most cases, the owner of a policy* has to demonstrate that he or she is dependent in some way on the person whose life is being insured. This is known in the business as the "insurable interest" doctrine and has origins in common-law practice"

Clearly, your employer isn't dependent on you in anyway

So why is this acceptable?

http://deadpeasantinsurance.com/

Update:

@Kilroy: Are you trying to make a point? Because I can't tell, I'm not into party wars

Update 2:

So a bank teller is a insurable interest and B of A depend on them? Lol okay you people are more brainwashed than i assumed

Update 3:

How long do you really think it takes to train a cashier at Wal Mart? 50K?

Because a Wal Maart employee probably won't make that in a decade

Update 4:

@Greg: Please check the companies that do this, it's under the link I swear to you it's more low paying jobs that do this than livable wage ones

Update 5:

@George: What hypothesis? It's all fact, people have sued companies over this...get out more

6 Answers

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  • Anonymous
    8 years ago
    Best Answer

    And the beat goes on with the rich conservative republican b@st@rds who get away with this gawdawful stuff.

    The fact that anyone votes for a republican is beyond me when you hear such things.

    btw - It's completely illegal in Canada and has been for goodness knows how long, IF it ever happened in the first place !!

  • Greg
    Lv 7
    8 years ago

    Why wouldn't it be?

    Their "insurable interest" is the time and money they have in the development of each employee.... and the time and money it will cost to replace them.

    You can insure just about anything for a price.

    EDIT: They could have done a little better on the nomenclature than "dead peasant" policies.... admittedly.

    EDIT #2: No one insures bank tellers guy. But they DO insure software engineers.... presidents and vice presidents of companies, attorneys, CEO's and other people with HARD TO FIND and particularized knowledge. Those people are not easy to replace.

    And sorry... this isn't about "beliefs" and "right or wrong" or anything else pertaining to "brainwashing." It is about dollars. Period.

  • Dan T
    Lv 5
    8 years ago

    The employer is dependent on on certain employees, such as a highly skilled computer programer, or a highly skilled engineer, who are responsible for the development of a highly invested project.

    The same reason a company can take out a Billion Dollar insurance policy on a Ice Cream taste tester's taste buds, a Company can take out a Life insurance policy on employees, so they don't lose money if a important asset to their company dies.

  • Anonymous
    8 years ago

    Ask John Kerry's wife, the Heinz Corporation.

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  • Anonymous
    8 years ago

    They have an insurable interest.

  • 8 years ago

    You hypothesis is.... well..... just plain nutty.

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