This one is going to sound like an insurance company trying to get out of doing its job, but it only really comes up in very particular circumstances.
Generally speaking, the benefits payable exclusion is a clause in an insurance policy that excuses the insurer from paying benefits if the policy holder is able to use funds from somewhere else. Where it comes up is highly specific.
It's usually used in a kind of policy called a fiduciary liability policy. This covers pension plans and comes into play if the people who are part of the pensions ever sue, claiming something is wrong with the plan, like...it didn't set aside enough money to pay benefits.
Say someone sues the pension and is awarded an amount of money. If there is money available in the pension plan, that's where the funds come from to cover the judgment. The benefits payable exclusion prevents the fiduciary liability policy from taking effect. However, if the pension fund is insolvent and can't pay the judgment, the insurance company would be on the hook for the pay out.
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Finance: What is a Beneficiary?25 Views
Finance a la shmoop.. what is a beneficiary? well in Latin, bene is
good so this is like a good place to catch fish...well close not [Old man fishing in the ocean]
really but being a beneficiary is good it means you get stuff like if you are
the beneficiary of weird uncle Al's will then you get his odd collection of hair
balls shaped like US presidents and thirty two thousand two hundred sixty [Uncle Al's will appears]
$9.32... in essence then you are the beneficiary of his will you are the one
set up to benefit by the death of someone who wanted to favor you with
their assets when they had you know passed on to the great beyond where hair [Uncle Al with white wings in heaven]
balls will fall....
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