Stipulation in favor of a third party in a group life insurance contract: case for teaching with the possibility of simulating the contract

Abstract

This teaching case refers to a situation in which a company takes out group life insurance for its employees. The contract signed with the insurance company includes a clause excluding the insurer's liability in the event that the employee engages in risky leisure activities on weekends. However, the company employee, who had not been informed of the aforementioned clause, engages in the prohibited activity and ends up dying. His heirs requested insurance, but were denied. The purpose of this teaching case is to discuss with students the duties attached to the insurance contract, who is responsible for informing the beneficiaries about the limiting clauses and assessing whether or not payment is due to the heirs, covering the analysis with the fundamental concepts of the law of obligations and contracts, notably principles of contract law, such as objective good faith.