Alcohol-related DUI incidents and their impact on life insurance claims
Life insurance companies often attempt to deny claims based on the policyholder's intoxication at the time of death. However, it's important to note that mere intoxication does not automatically serve as grounds for denial. Let's explore a specific case where a widow challenged the denial of a life insurance claim.
The wife of an Oregon man who tragically passed away due to a kitchen accident took legal action against his life insurance company. She alleged that the company was refusing to honor the policy due to her late husband's consumption of alcohol on the day of his death. Seeking $1.3 million from Hartford Life and Accident Insurance Co., she recounted the incident wherein her husband, alone at home, accidentally dropped a domed glass cake cover, causing it to shatter. A sharp edge from the broken glass severed a major artery in his left foot, resulting in his unfortunate death by excessive bleeding.
The Oregon medical examiner's office determined the cause of death to be the sharp force foot injury, leading to fatal blood loss suffered by Mr. Vinson.
To her astonishment, the widow's claim for $386,000 from her husband's life insurance policy, as well as the associated benefit intended to cover their 19-year-old daughter's college expenses, was denied by the insurance company. The insurer justified its decision by asserting that the incident fell under Oregon's DUI (driving under the influence) laws.
According to the insurance company, Mr. Vinson's death did not meet the policy's requirement of resulting from bodily injury caused solely by an accident, independent of all other causes. Additionally, the company cited a policy exclusion that denies coverage for injuries sustained while the insured person is legally intoxicated due to alcohol use.
In her lawsuit, the widow argued that intoxication was a contributing factor to her husband's death, along with other medical issues. However, none of these conditions were listed as causal factors in the official cause of death report. She also disputed Hartford's assertion that Oregon law deems it unlawful to be intoxicated, by any definition, within the privacy of one's own home.
The outcome of this legal battle will shed light on the interpretation of the insurance policy's terms, the applicability of DUI laws in private settings, and the extent to which intoxication can be considered a factor in determining the eligibility of life insurance claims.