Life insurance companies sometimes deny claims by invoking a felony exclusion, arguing that the insured died while committing or fleeing from a felony. These denials can be devastating for families and are often presented as automatic or non-negotiable. In reality, felony exclusions are one of the most frequently misapplied and overused denial tools insurers rely on.
Many felony-based denials are legally vulnerable. Insurers must meet strict standards before they can lawfully refuse payment, and they often fail to do so.
Understanding how felony exclusions work, and how they can be challenged, is critical to recovering the death benefit.
What Is a Felony Exclusion in a Life Insurance Policy?
A felony exclusion is a policy provision stating that the insurer will not pay benefits if the insured dies while committing, attempting to commit, or fleeing from a felony. The purpose of the clause is to prevent insurance from rewarding intentional criminal conduct.
However, these exclusions are not unlimited. They are interpreted narrowly under the law, and insurers bear the burden of proving that the exclusion applies.
A valid felony exclusion denial generally requires proof of both:
The commission of a felony as defined by law
A direct causal connection between the felony and the death
If either element is missing, the exclusion may fail.
Common Felonies Insurers Rely On
Insurers most often invoke felony exclusions in cases involving serious crimes, including:
Armed robbery
Burglary
Arson
Murder or manslaughter
Kidnapping
Drug trafficking or manufacturing
When the insured clearly died during an active, proven felony, courts are more likely to uphold the denial. These cases tend to be fact-specific and heavily dependent on criminal records and witness testimony.
How Insurers Stretch Felony Exclusions Beyond Their Limits
Many denials occur in cases that are far less clear than insurers suggest. Common overreach scenarios include:
Death occurring after the alleged felony concluded
Death unrelated to the alleged criminal conduct
No criminal conviction or formal charge
Conduct that does not legally meet the definition of a felony
Allegations based solely on police suspicion
Insurers often deny claims even when no court ever determined that a felony occurred.
Nonviolent and Lesser-Known Felony Disputes
Felony exclusions are not limited to violent crimes. Insurers sometimes apply them to nonviolent offenses, which creates additional legal vulnerabilities.
Examples include:
White-collar crimes
Financial fraud
Drug possession escalated to felony level
Computer or technology-related offenses
Regulatory violations
In these cases, insurers must still prove that the death resulted from the felony itself, not merely that the insured had legal trouble at the time.
Courts routinely reject denials where the felony status is incidental or unrelated to the cause of death.
A Criminal Conviction Is Not Always Required
One of the most misunderstood aspects of felony exclusions is whether a criminal conviction is necessary. While some policies reference convictions explicitly, many do not.
Even without a conviction, insurers must still establish:
That the insured committed acts constituting a felony under applicable law
That those acts materially caused or contributed to the death
If criminal charges were dropped, reduced, or never filed, the insurer’s position becomes significantly weaker.
The Causation Requirement Is Often the Weakest Link
One of the strongest ways to fight a felony exclusion is to challenge causation.
The insurer must show that the death occurred because of the felony, not merely during the same time period.
Common causation defenses include:
The death resulted from an independent accident
A medical event unrelated to the alleged crime
Third-party actions not tied to the insured’s conduct
Self-defense or mistaken identity situations
If the insured’s death would have occurred regardless of the alleged felony, the exclusion may not apply.
Self-Defense and Disputed Criminal Conduct
Many felony-based denials rely on initial police reports that later prove inaccurate. Insurers frequently deny claims before investigations are complete.
Self-defense cases are particularly vulnerable to wrongful denial. If the insured was defending themselves, mutual combat rules or felony assault allegations may not hold up.
Witness statements, forensic evidence, and final investigative findings often contradict the insurer’s assumptions.
What to Do After a Felony Exclusion Denial
If a life insurance claim is denied based on a felony exclusion, immediate action is important.
Step One: Demand the Full Claim File
Request the insurer’s entire claim file, including:
Internal notes
Legal reviews
Police reports relied upon
Any third-party investigations
This often reveals gaps or assumptions in the insurer’s reasoning.
Step Two: Analyze the Policy Language Precisely
Felony exclusions vary widely. Some require intent, others require conviction, and some are limited to specific crimes.
Small wording differences can determine whether the exclusion is enforceable.
Step Three: Examine the Criminal Case Record
Obtain all available criminal records, including:
Arrest reports
Charging documents
Court dispositions
Medical examiner findings
A lack of conviction or a reduction in charges can significantly undermine the denial.
Step Four: Challenge Overbroad or Vague Exclusions
Courts often construe ambiguous policy language in favor of coverage. If the felony exclusion is vague, undefined, or inconsistently applied, it may be unenforceable.
Step Five: Consult a Life Insurance Attorney Early
Felony exclusion cases are highly technical and fact-intensive. An experienced life insurance attorney can:
Identify legal flaws in the denial
Develop causation defenses
Negotiate reversal or settlement
File suit when necessary
Many wrongful felony denials are reversed once insurers are forced to defend their position under scrutiny.
The Bottom Line
A felony exclusion does not automatically eliminate life insurance coverage. Insurers must prove both criminal conduct and a direct causal connection to the death. Many denials fail under legal review because the facts do not support the exclusion as written.
If your claim was denied based on a felony exclusion, it is not the end of the road. With proper investigation and legal strategy, these denials are often successfully challenged.