by Guest » Sun Sep 26, 2010 05:21 pm
Friend took out a life insurance policy. He disclosed prior drug history and felony for cocaine. He took paramedical exam. Insurance accepted him, as he was very, very successful. He subsequently relapsed and died shortly after taking out policy. He checked into drug rehab facility. This facility has conflicting dates as to when he actually relapsed. Of course insurance took date helpful to them and denied widow and 4 kids benefits. My friend was honest to a fault. The insurance company knew all about his past. In addition, my friend did not even go in for life insurance! He went into see a financial advisor, who told him he needed this and he could get it for him. Oh, did I mention he had been turned down 2 years before by another company for disclosing the exact info. provided to these cheats! Any advice for my friend on similiar cases
Posted: Mon Sep 27, 2010 03:17 am Post Subject: Best Auto Insurance
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Post edited and link deactivated as per TOS
Posted: Mon Sep 27, 2010 12:28 pm Post Subject:
I think it's always important for us to know the financial stability as well as the claims history of a carrier before we enroll with them. You really shouldn't go after anything till you have some idea.
Posted: Mon Sep 27, 2010 03:13 pm Post Subject:
did I mention he had been turned down 2 years before by another company for disclosing the exact info. provided to these cheats!
First, the post has nothing to do with quotes for insurance or claims history of insurers. So the two previous posts are worthless bits of information and do not come close to addressing the question.
Second, it also has nothing to do with insurance companies cheating anyone. What is your basis for making such a remark? That once a person buys life insurance the insurance company HAS TO PAY? Not always true, and especially so in the first 1-2 years of a policy. What is true is that if an insurance company has been paid a premium, and the insurance company lawfully denies a death claims, it must refund the premiums it was paid. Can't have the money and not pay a claim. Doesn't work that way.
And being turned down for insurance by one company is one thing, and being accepted by a second company is another -- it happens all the time. Ultimately, if a person is approved for insurance, what difference does it make that they were previously declined? The insurance company has evaluated that and was not put off by it.
He subsequently relapsed and died shortly after taking out policy. He checked into drug rehab facility. This facility has conflicting dates as to when he actually relapsed. Of course insurance took date helpful to them and denied widow and 4 kids benefits.
Well, it would be truly important to know the reason they denied the death claim. And it would be nice to know how a facility could have "conflicting dates" that were significant to the insurance company. But here's my reasoned guess.
I am assuming that the facility's conflicting date has something to do with timing of the date of application or issuance of the insurance policy. So let me propose a possible scenario that might be close to the reality of the situation:
Applicant stated to insurance company on Sept 2 that they are not using any illegal substances (in the application for insurance or, possibly, a delivery receipt/statement of good health). We'll assume the statement was made in the application for insurance.
Policy issued on Sept 20. Facility's intake notes, upon admission to facility on Oct 1, state "Pt reports using 3 gms cocaine on Sept 1, followed by ER visit on Sept 3 for arrythmia. Continued intermittent use of 1 to 5 gms cocaine until admission."
What's the conflict? If the circumstances were similar to this, the insurance company would probably void the policy on the basis of MATERIAL MISREPRESENTATION -- a perfectly valid reason in all 50 states, DC, Puerto Rico, Guam and the Marshall Islands and Virgin Islands, and at least 100 other countries around the world.
Could it be that they have determined his death to be a suicide, due to self-administration of a toxic substance? Insurance contracts include a SUICIDE PROVISION that allows the company to avoid a claim in the first 1-2 years of the policy. Again, perfectly legal in all those same places.
In either case, whatever premium was paid is refunded to the named beneficiary or the policyowner or the decedent's estate, whichever applies first.
No one is being cheated, except prehaps the widow and her children by the deceased husband who was a druggie. And I'm sure the wife was well aware of that fact, too.
Provide better information if none of these circumstances is true.
Posted: Tue Sep 28, 2010 12:46 am Post Subject:
We should know the company first!
Posted: Tue Sep 28, 2010 01:03 am Post Subject:
We should know the company first!
No. We should have the true and complete facts of the situation. The insurance company itself is of little importance until the facts are in the open.
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