A legal status of an insured has committed a suicide

Abstract

A characteristic of a life insurance contract is a kind of insurance contract whereby the insurer agrees to pay a certain amount of money which prior stipulated in case there be either condition occurs in accordance with the contract.  The authors studied the life insurance contract which relies on the death of the assured. When the assured dies, the insurer has to pay a sum of money corresponding to the contract, unless such person voluntarily commits suicide within one year after the date of the contract as prescribed in the Civil and Commercial Code Section 895 (1). The reason that the law prescribes the exception of the insurer thereof, because it has an objective to prohibit the contract made with the purpose of receiving money, in the view of the fact that there shall be a possibility the assured has the intention to suicide himself, and makes the contract in order to grant benefits to his heirs from the insurance money. Therefore, the law disqualifies the beneficiary’s rights on compensation payment according to the contract. Nevertheless, the period of time for one year is too short, therefore the authors recommend amending the period of time of the law from one year to two years, and the law should be additionally enacted that the death must occur within two years from the date of the contract.