Do you need help understanding the complexities of life insurance? Are you looking for guidance to make sure you’re getting the best coverage for your needs? Look no further this blog post is here to provide you with all the information and advice you need on life insurance. Read on to learn more about how to get the most out of your life insurance policy.
1. California Supreme Court Decision Governing Life Insurance
On August 30, 2021, the California Supreme Court in McHugh v. Protective Life Insurance Co. (2021) 12 Cal. reversed the Court of Appeal’s decision and held that sections 10113.71 and 10113.72 apply to all life insurance policies in force when these two sections were enacted. The Supreme Court ruled that life insurance is a “good” or “service” under the California Legal Remedies Act (CLRA). This ruling could help some slow-paying insurance policyholders keep their policies since it requires insurers to send out notice of pending lapse and termination of a policy to the policyholder before it can take effect. Additionally, this decision will also have implications for ERISA plan administrators who have fully distributed plan proceeds. As ERISA will now preempt any state-law rights to those proceeds.
2. Georgia Supreme Court on Life Insurance Policy as Illegal Wagering Contract
The discussion on life insurance does not end in California. In Jackson National Life Insurance Co. v. Crum, the court ruled that a policy taken out without an insurable interest was not void as an illegal wagering contract. It also rejected attempts to evade state supervision by attempting to transfer the policy to a third party. This ruling confirms the limits of life insurance and upholds the law in Georgia.

3. Supreme Court Rejects Attempts to Evade State Supervision
The Supreme Court of the United States has recently examined several cases related to life insurance. Most notably the Metropolitan Company v. Glenn decision. In this case, the court rejected an argument from the insurer that it should be allowed to avoid state supervision by claiming that the policy was a contract of adhesion. The court instead held that State law governs the interpretation. And enforcement of insurance policies, regardless of any contractual language. This decision reaffirmed the importance of state supervision over insurance policies and protects policyholders from potentially unfair practices.
4. Supreme Court Upholds Limits on Life Insurance Deposits
In Oregon Mutual Life Insurance Co. v. United States, the Supreme Court reasoned that the policyholder. after delivery of the policy, ceases to be a resident of New York or if the beneficiary is a non-resident, the exclusion of the proceeds is limited to the sum of the deposits. This decision has been upheld in revision by the NCDRC and hence. The insurer is obligated to pay out the claim under the cover insurance policy.
5. Metropolitan Life Insurance Company v. Glenn
In June 2008, the Supreme Court issued a ruling in Metropolitan Life Insurance Company v. Glenn. The case questions the extent to which a plan administrator has discretion when evaluating and paying disability benefits. The court ruled that plan administrators do have discretion, but they must provide a “reasoned explanation” for the decisions they make. This is important because it allows insured individuals to challenge decisions they disagree with and gives them the opportunity to appeal if needed.
6. Supreme Court Upholds Life Insurance Law
The Supreme Court of the United States has consistently upheld the legality of life insurance policies and laws governing them. In Burt v. Union Central Life Insurance Company, the Court addressed a constitutional challenge to state law on life insurance policies and ultimately rejected it. However, public policy forbids any attempts to evade state supervision regarding such policies. Moreover, the law provided that an insured can designate an irrevocable beneficiary under an insurance policy and restrict donations to common-law spouses.
Additionally, the Court established a controlling legal standard for life insurance policies. Affirming the validity of the Federal Employees Group Life Insurance Act and ERISA Statute. This decision highlights the importance of upholding state laws on insurance and ensuring that people are aware of their rights and obligations under such policies.

7. Common-Law Spouses Banned from Receiving Donations
In addition to the legal guidelines regarding life insurance policies. Individuals should be aware that common-law spouses are banned from receiving donations from each other. Article 739 of the new Civil Code provides that donations between spouses are not allowed. And this applies to common-law spouses as well. Employers sponsoring insured health and welfare plans also cannot exclude common-law spouses from those plans. Furthermore, any customs which are contrary to law, public order, or public policy are also not permitted. Minors may make and receive donations in their ante-nuptial contract, however, bona fide charities are not prohibited from soliciting funds. It is important to be aware of these regulations and restrictions when dealing with cover insurance policies.
8. CBDT Subsequent to Direction of Hon’ble Supreme Court
The Hon’ble Supreme Court has recently issued instruction No. 01/2022, dated 11.5.2022, which contains guidelines for the implementation of its decision in Vishaaka & Ors. 1982 SC 149, a seven Judge Bench of the Hon’ble Supreme Court. However, one or more High Courts or before two or more High Courts. And norms laid down by the Hon’ble Supreme Court in order to guarantee fair and reasonable outcomes for all parties involved.

9. Controlling Legal Standards for Life Insurance Policies
The Supreme Court has declared that a controlling legal standard exists for life insurance policies. For example, the Supreme Court denied attempts to evade state supervision in the case of Metropolitan Life Insurance Company v. Glenn and upheld limits on insured deposits in the CBDT Subsequent to the Direction of the Hon’ble Supreme Court case. In addition, the Court upheld a law banning common-law spouses from receiving donations in the form of insurance policies. Thus, it is clear that the Supreme Court has provided guidance on insurance in order to ensure fairness and uniformity in the industry.
10. Federal Employees Group Life Insurance Act & ERISA Statute
The Federal Employees’ Group Life Insurance Act of 1954 and its implementing regulations state that FEGLI benefits “shall be exempt from the application of all State and local laws”. Which includes state insurance laws. However, this means that ERISA plan administrators have full discretion to allocate proceeds. And ERISA preempts any claimant’s state-law right to those proceeds. Recently, the Supreme Court held in Pilot Life Ins. Co. v. Dedeaux, ante p. 481 U.S.
Conclusion
In conclusion, the various Supreme Court decisions discussed in this blog post show the importance of the US legal system. The California Supreme Court held that sections 10113.71 and 10113.72 apply to all insurance procedures. However, the Georgia Supreme Court found life insurance procedures to be illegal wagering contracts, and the Supreme Court denied attempts to evade state control. Furthermore, the Supreme Court upheld limits on insurance deposits.