We are happy to announce a successfully resolved Occidental life insurance claim denial.
Most life insurance policies contain specific exclusions that prevent payouts under certain conditions. One of these conditions involves the insured's involvement in criminal activity at the time of death. The rationale behind this exclusion is that insurance companies do not want to incentivize risky or illegal behavior. If someone dies as a direct result of their participation in a felony, the insurer may refuse to pay out the death benefit, leaving their loved ones without the expected financial support. Our top life insurance lawyers fight all denied and delayed life insurance claims as well as beneficiary disputes and interpleader lawsuits.
A felony is typically defined as a serious crime, often punishable by imprisonment for more than a year. These crimes can range from violent offenses like armed robbery to non-violent crimes such as fraud or drug trafficking. If a policyholder dies while engaging in such activities, their beneficiaries may be left empty-handed. This policy exclusion is standard across many insurers, though the specifics can vary, making it crucial for policyholders to carefully review their coverage details. Henry had a life insurance policy with a $500,000 death benefit. Struggling with financial difficulties, he decided to rob a jewelry store. During the robbery, an altercation ensued, and Henry was shot and killed. When his family attempted to claim the life insurance payout, the insurer denied the claim on the grounds that John died while committing a felony. Lisa had a substantial life insurance policy. Unbeknownst to her family, she became involved in drug trafficking. One day, while transporting illegal substances across state lines, she is involved in a high-speed police chase that ends in a fatal car crash. Because Lisa was actively engaged in the commission of a felony at the time of her death, her insurance company refused to pay out the claim. Mark was a corporate executive involved in a large-scale embezzlement scheme. When authorities uncovered the fraud, Mark panicked and attempted to flee the US. During his escape attempt, he died in a car accident. His insurance company investigated the circumstances surrounding his death and determines that he was in the process of evading law enforcement due to his involvement in a felony. As a result, his claim was denied.
Our life insurance law firm is here to help.