$75,000 Occidental Life Insurance Claim Denial Successfully Resolved
We are pleased to announce the successful resolution of a $75,000 denied life insurance claim involving Occidental Life Insurance Company. The claim had originally been denied on the grounds that the insured was involved in criminal activity at the time of death—a common exclusion found in many life insurance policies. Our legal team fought the denial and recovered the full benefit for the family. At LifeInsuranceAttorney.com, we handle denied and delayed claims from all major insurers, including Occidental, Prudential, Globe, Mutual of Omaha, and Transamerica. We also litigate beneficiary disputes and interpleader lawsuits, giving our clients comprehensive support when life insurance issues become complex.
Criminal Activity Exclusions in Life Insurance Policies
Many policyholders are unaware that life insurance policies often contain felony exclusion clauses. These provisions allow insurers to deny payment if the insured dies while committing—or attempting to commit—a felony. The rationale behind this exclusion is that insurers do not want to encourage illegal or dangerous behavior by providing financial rewards for high-risk criminal acts. While the logic is clear from the insurer’s standpoint, these exclusions often lead to hard-fought legal battles when families are denied benefits due to controversial or ambiguous circumstances.
What Qualifies as a Felony?
A felony is generally defined as a serious crime punishable by over one year in prison. Felonies can range from violent crimes like armed robbery or assault to non-violent offenses like drug trafficking, grand theft, or large-scale fraud. If a policyholder dies while directly involved in such conduct, the insurance company may attempt to void the policy under this exclusion. However, the application of this rule is not always straightforward, and insurance companies sometimes stretch its limits to avoid paying claims. That’s where our life insurance attorneys come in.
Real-Life Examples of Denied Claims Based on Felony Exclusions
Case 1: Henry’s Fatal Robbery Attempt
Henry was facing serious financial hardship and made the tragic decision to rob a jewelry store. During the robbery, a shootout occurred, and Henry was killed on the scene. When his family submitted the claim for his $500,000 life insurance policy, the insurer denied payment. They cited the felony exclusion, stating that his death occurred while actively participating in an armed robbery. The family was left without the benefit they had counted on. While the facts of the case made the exclusion applicable, our firm has successfully contested similar cases where the link between the criminal act and the death was more tenuous or mischaracterized.
Case 2: Lisa’s Drug Trafficking Tragedy
Lisa’s family had no idea she had become involved in a drug distribution network. While transporting narcotics across state lines, she was pursued by law enforcement and died in a high-speed crash. The insurer cited her involvement in felony drug trafficking as grounds to deny the claim. In cases like this, our legal team looks closely at timing, causation, and the specifics of the policy language to determine if the exclusion is enforceable under state law.
Case 3: Mark’s Embezzlement and Escape Attempt
Mark was a corporate executive who had orchestrated a multimillion-dollar embezzlement scheme. When federal authorities moved to arrest him, he fled. While driving to the airport in an attempt to leave the country, he was involved in a fatal crash. His insurer conducted a thorough investigation and denied the claim, asserting that his death occurred in the act of evading law enforcement during the commission of a felony. These types of cases raise complicated legal questions about whether the act of fleeing—rather than the underlying crime—triggered the exclusion.
When Can Criminal Activity Exclusions Be Challenged?
Felony-related denials may be enforceable in some circumstances, but they are not always final or legally sound. In many cases, the insurer applies the exclusion without clear evidence that the death occurred during the commission of a crime. For instance:
If the death was indirectly related to the crime, the exclusion may not apply.
If the insurer fails to prove intent, such as with accidental involvement in a criminal act, the claim may still be valid.
If the policy language is vague or overbroad, courts may rule in favor of the beneficiary.
If the insured was never charged or convicted, the exclusion may not be enforceable, depending on the state.
Our legal team fights these denials by obtaining police reports, medical records, witness statements, and policy documents. We challenge insurer assumptions and demand strict proof of exclusion before any denial is allowed to stand.
We Handle More Than Denials Involving Felonies
In addition to criminal activity exclusions, our life insurance lawyers also handle claims involving:
Policy lapse disputes
Misrepresentation or application errors
Suicide exclusions and contestability clauses
Foreign death documentation issues
Delayed claims and stalling tactics
Beneficiary disputes and interpleader litigation
No matter how complex the case may be, our law firm fights for beneficiaries and ensures insurers don’t get away with unfair or unsupported denials.
FAQ About Denied Life Insurance Claims Due to Felony Involvement
Can life insurance deny a claim if the insured was committing a felony?
Yes, most policies contain exclusions for deaths occurring during the commission of a felony. However, the exclusion must be clearly stated and proven by the insurer.
What counts as “during” a felony?
That’s often disputed. If the death is incidental, indirect, or occurs after the act, the exclusion may not apply. We argue these cases regularly.
What if the insured wasn’t convicted?
Conviction is not always required, but the insurer must present credible evidence that the death occurred during a felony. We challenge weak or speculative claims.
Can a felony exclusion be overridden?
Possibly. If the exclusion is vague, not clearly communicated, or misapplied, we may be able to force a payout or negotiate a settlement.
Does this apply to all types of crimes?
No. Felony exclusions typically apply to serious crimes, not misdemeanors. The policy language defines which crimes qualify.
Can I appeal a denied claim based on this exclusion?
Yes. We handle appeals, reviews, and lawsuits involving felony-based exclusions. Many of these denials are reversed after legal review.
Do you help with claims involving drug trafficking or financial crimes?
Yes. We’ve resolved life insurance denials stemming from drug-related offenses, embezzlement, money laundering, and more.
What if the insured died accidentally during a criminal act?
Insurers may still deny the claim, but we can argue lack of intent or causation. Each case must be evaluated individually.
Do you only handle Occidental Life?
No. We fight claims denied by all insurers, including Transamerica, Pacific Life, Corebridge, Lincoln Financial, and Globe Life.
How long do I have to dispute a denied claim?
Timelines vary, but acting quickly is essential. Contacting our firm immediately gives you the best chance of success.