Our top life insurance lawyers would like to share some white collar crime life insurance claim denial cases.
Midland National Life Insurance Claim Denial: The beneficiary’s father died in an accident while facing charges for white collar crime. He had bought a life insurance policy before his fraud scheme and named his son as the beneficiary. He had not revealed his illegal insurance activities when he applied for the policy. The life insurance company rejected the claim based on the policy’s felony exclusion clause, which said that the policy would not pay if the insured person died while committing or trying to commit a felony. His life insurance attorney wrote a brief and negotiated a settlement.
Globe Life Insurance Claim Denial: The beneficiary’s husband died of a stroke while under investigation for tax evasion. He had purchased a life insurance policy before his investigation and named his wife as the beneficiary. He had not reported his income or his tax liabilities when he applied for the policy. The life insurance company refused the claim based on the policy’s felony exclusion clause, which stated that the policy would not pay if the insured person died while committing or attempting to commit a felony. The wife hired a life insurance attorney who argued that the insured person did not die while committing or attempting to commit a felony, but rather due to a natural cause. The attorney negotiated a settlement.
Equitable Life Insurance Claim Denial: The beneficiary’s father died of a heart attack while being sued for embezzling funds from his employer. He had bought a life insurance policy before his embezzlement scheme and named his daughter as the beneficiary. He had not disclosed his occupation or his legal troubles when he applied for the policy. The life insurance company rejected the claim based on the policy’s felony exclusion clause, which said that the policy would not pay if the insured person died while committing or trying to commit a felony. The daughter hired a life insurance attorney who argued that the insured person did not die while committing or attempting to commit a felony, but rather due to a pre-existing medical condition. The attorney negotiated a settlement.
Progressive Life Insurance Claim Denial: The beneficiary’s husband died of a heart attack while involved in a money laundering operation. He had purchased a life insurance policy before his money laundering scheme and named his wife as the beneficiary. He had not disclosed his criminal history or his association with organized crime when he applied for the policy. The life insurance company refused the claim based on the policy’s felony exclusion clause, which stated that the policy would not pay if the insured person died while committing or attempting to commit a felony. The wife hired a life insurance attorney who argued that the insured person did not die while committing or attempting to commit a felony. The attorney negotiated a settlement.
American Life Insurance Claim Denial: The beneficiary’s brother died while using stolen credit cards. He had purchased a life insurance policy before his theft scheme and named his brother as the beneficiary. He had not revealed his criminal history or his involvement in credit card fraud when he applied for the policy. The life insurance company denied the claim based on the policy’s felony exclusion clause, which stated that the policy would not pay if the insured person died while committing or attempting to commit a felony. The brother hired a life insurance attorney who negotiated a settlement.
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