Rights of Policy Ownership

MR. WATSON: To whom do the rights of policy ownership belong?

ALL: The policy owner.

MR. WATSON: The policy owner. And that is not necessarily the insured. The policy owner can do everything to the policy without the insured's consent except increase the coverage. Everybody agree with that?

ALL: Yes.

Standard Policy Provisions:

The Entire Contract ****

MR. WATSON: The entire contract provision, found at the beginning of the policy, states that the policy document, the application, which is attached to the policy, constitutes the entire contract. Nothing may be incorporated by reference. Meaning the policy cannot refer to anything outside document as being part of the contract. In other words, the company cannot refer to anything that's kept on file in the home office if it is not a part of the contract given to the policy owner.

MR. WATSON: For the contract to be legal, valid, and binding, must the application be attached?

ALL: ???????

MR. WATSON: The answer is no.

MR. WATSON: It says "is attached." It leads you to believe it must be. But that's not true. It should read, "The entire contract, found at the beginning of the policy, including the application, which usually is attached to the policy," that's how it should read. Y'all with me? "Which usually is." Sometimes is. Most of the time is. Does it have to be?

ALL: No.

MR. WATSON: Now, here's the deal. Lebanon, that's you, son, is filling out a life insurance application. He has flesh-eating bacteria and he knows it.