Legal Question in Insurance Law in Ohio

Annuity Ins. Co. Won't Pay Death Claim to Named Bene. Pays to Estate Instead...

About 3 months ago, a client of mine transfered a after tax account into a fixed annuity. The account was held in an individual ownership with a TOD agreement. The client signed the application for the new annuity and signed the transfer paperwork. Before the annuity contract was funded/issued, the client died. The annuity application had a named beneficiary, same as the TOD agreement for the brokerage account. The ins. company went ahead and issued the contract (without knowledge of the client's death because she was not found dead for many days). Upon receiving the death cert., the ins. co. cancelled the annuity contract, saying they could not have an issue date after the client's date of death. Instead of processing the death claim to be paid to the beneficiary on the application, they returned the monies payable to the client's estate. This now is a huge problem, because the monies would have transfered to the named beneficiary if the monies were left in the brokerage account. Now the beneficiary has a check payable to the mother's estate. These assets will now have to go through probate. I understand the ins. company's point that there is no official contract. Does the beneficiary have any recourse?

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