Insurance Proceeds Dispute | Assisting a Client in a Common-Law Marriage to Secure Payment of Insurance Proceeds and Recovery of Litigation Costs

As in the client's case, where a common-law spouse is designated as the beneficiary, receipt of the insurance proceeds is possible.

However, a death certificate, which must be submitted when claiming death insurance proceeds, can be issued only with the consent of the deceased's legal family. If the surviving family members who are the statutory heirs do not consent to the issuance of the deceased's death certificate, the common-law spouse is unable to receive the insurance proceeds.

In this case as well, because the late Mr. A had no next of kin and was in a common-law marriage, there was difficulty obtaining a death certificate, and the defendant relied on this very point in refusing payment of the insurance proceeds.

The insurance attorney undertook the 🔗litigation against the insurance company on behalf of the client.

A policyholder has the right to claim insurance proceeds when an insured event occurs with respect to the death or survival of the insured, or the death and survival of the insured, or when a loss arises to the property of the insured as a result of an insured event.

The insurance attorney also emphasized that, where all or part of an insurance contract is void, the policyholder, the insured, and the beneficiary may claim a refund of all or part of the premiums from the insurance company if they acted in good faith and without gross negligence.

In support of the position on this insurance proceeds dispute, the insurance attorney argued that, if it is sufficiently recognized that the parties carried on a normal married life in accordance with the general social conception, the provision should be interpreted broadly to recognize the common-law marriage, and the insurance proceeds should be paid.

Although the civil law of Korea adopts the principle of legal marriage, where, for unavoidable personal reasons, the marriage registration is delayed or not completed, and a common-law marriage in fact exists, the law recognizes certain legal rights with respect to it as well.

The insurance policy terms of the contract entered into between the late Mr. A and the defendant define a spouse under a "spousal-type contract" as a spouse on the family register or the resident registration. This is a provision intended to verify the qualification of the insured and to prevent moral hazard.

The insurance attorney emphasized that, if a substantive marital relationship is recognized, refusing payment of the insurance proceeds is improper.

The insurance attorney argued that, based on the common-law marriage recognized under the civil law, where the parties carried on a normal married life, interpreting the above provision broadly to recognize the common-law marriage accords with the original purpose of insurance, so that payment of the insurance proceeds could be assured.