Life insurance companies frequently deny claims when a death involves alleged criminal conduct. One of the most common scenarios involves alcohol related driving accidents, where the insurer argues that the insured was committing a felony at the time of death and therefore coverage does not apply.
These denials are often wrong.
Our firm recently reversed a $450,000 life insurance claim denied by AIG based on a felony exclusion. We have also successfully handled similar cases involving Nationwide and other major carriers where insurers attempted to stretch felony language far beyond what the law allows.
What Is a Felony Exclusion in a Life Insurance Policy?
Many life insurance policies contain a felony exclusion stating that no death benefit will be paid if the insured dies while committing a felony. On its face, this sounds straightforward. In practice, insurers routinely misapply it.
A felony exclusion does not automatically apply just because the insurer alleges criminal behavior. The carrier must prove that:
• The insured was committing a felony under state law
• All legal elements of that felony were met
• The felony directly caused the death
• The policy language clearly supports denial
If any of those elements are missing, the exclusion may not apply.
How DUI Based Felony Denials Commonly Arise
Drunk driving is one of the most frequent triggers for felony exclusion denials. Insurers often assume that any fatal accident involving alcohol qualifies as felony conduct. That assumption is incorrect.
In many states:
• DUI is not automatically a felony
• Felony DUI requires prior convictions, serious injury, or death of another person
• A BAC reading alone does not establish felony conduct
• No conviction may ever occur
Life insurance companies are not criminal courts. They do not get to invent felony status simply because alcohol was involved.
In several cases we have handled, insurers denied claims even though:
• No felony charge was filed
• No conviction existed
• BAC levels were disputed
• The accident cause was unrelated to intoxication
Those denials were overturned.
Why Insurers Get Felony Exclusions Wrong
Insurance companies often rely on internal claim guidelines rather than actual criminal statutes. They may label conduct as “felonious” even when the law does not support that conclusion.
Common insurer errors include:
• Treating misdemeanor DUI as a felony
• Ignoring the requirement of criminal intent
• Applying felony exclusions without a conviction
• Misreading state specific criminal statutes
• Failing to prove causation
Courts do not allow felony exclusions to be applied loosely. If the policy language is vague or the legal standard is not met, the denial fails.
AIG Felony Exclusion Denial Reversed
In our recent AIG case, the insurer denied a $450,000 claim alleging that the insured was committing a felony at the time of death. After reviewing the police reports, toxicology results, and state law, it became clear that:
• No felony charge was filed
• The conduct did not meet felony elements
• The policy language was ambiguous
• The alleged conduct did not directly cause death
After formal challenge and litigation pressure, AIG reversed the denial and paid the full benefit.
What Beneficiaries Should Do After a Felony Exclusion Denial
A felony exclusion denial should never be accepted at face value. These claims require legal analysis, not assumptions.
If your claim was denied under a felony exclusion, it is critical to:
• Obtain the full policy and exclusion language
• Identify the governing state criminal law
• Determine whether a felony actually occurred
• Analyze causation between conduct and death
• Preserve appeal and litigation deadlines
Many felony based denials collapse once examined closely.
Why These Claims Require a Life Insurance Attorney
Felony exclusion cases sit at the intersection of criminal law, contract law, and insurance law. Most beneficiaries do not have access to the statutes or case law insurers rely on, and insurers know that.
An experienced life insurance attorney can:
• Dissect felony statutes line by line
• Compare policy language to legal standards
• Challenge unsupported criminal assumptions
• Force insurers to justify their denial
• Litigate when necessary
We focus exclusively on denied life insurance claims and routinely reverse felony based denials across the country.
Do Not Let a Felony Label End the Claim
Life insurance companies often use the word “felony” to intimidate beneficiaries into walking away. In reality, many of these denials are legally unsound and reversible.
If your life insurance claim was denied based on alleged criminal conduct, DUI, or a felony exclusion, it deserves careful legal review. We have overturned these denials before and we are prepared to do it again.