[Buttons12]

IIRC there are rules about insurance and over-insuring an individual.

I've never heard that. (Because I know nothing about life insurance.)
But how would they know? Do insurance companies check to see if you have other policies?

[Ouderkirk]

I was a Series 7 for a while and I recall the insurance companies report into a central database about policies. An agent can be sanctioned for overselling for the generation of commissions. To sell a person another million dollar policy, when they are already insured for several million falls under the over-insured for commission and is a major red flag for death by induced misadventure.