Can Life Insurance Be Denied If Death Occurs During a Crime?
Yes, life insurance can be denied if the insured dies while committing a crime—a scenario typically governed by the commission of a crime exclusion found in many life insurance policies. This clause allows insurers to withhold payment of the death benefit if the insured's death occurs during the commission, attempt, or participation in a felony or other criminal act. While the exact language varies between policies and insurers, the intent is the same: to prevent payouts when death arises from illegal behavior.
What Is the Commission of a Crime Exclusion?
The commission of a crime exclusion is a standard clause found in many life insurance contracts. It gives the insurer the right to deny a claim if the insured dies while engaging in a criminal act. Most commonly, this exclusion applies to felonies such as robbery, drug trafficking, assault, or burglary. If the insurer can show that the insured’s death was directly or indirectly related to their participation in such a crime, they may legally withhold the payout. The clause is based on public policy—insurers don’t want to create an incentive to profit from criminal acts, and the law generally supports their right to deny benefits in such cases.
How Broad Is the Exclusion?
The scope of this exclusion depends entirely on how the policy is written. Some policies include a general reference to “commission of a felony,” while others list specific crimes or include any illegal acts that are punishable by imprisonment. Certain policies may apply the exclusion to all criminal activity, including misdemeanors, while others restrict it to felonies only. Additionally, some policies impose a time limit—such as two years—after which the exclusion no longer applies. Others maintain the exclusion for the life of the policy. That’s why reviewing the exact wording of the clause is critical.
Burden of Proof Falls on the Insurer
Importantly, the burden of proving that the exclusion applies lies with the insurance company. The insurer must present evidence that the insured was actively committing or attempting to commit a crime at the time of death. Police reports, witness testimony, medical examiner findings, and official criminal charges may all be used to establish this. However, mere suspicion or arrest is not enough. If the insurer cannot provide clear and convincing evidence, they may be forced to pay the claim.
Examples of Felony Crimes That May Trigger Denial
Life insurance policies often exclude coverage when death results from a felony. Below are twenty common felonies that may lead to a denied claim under the commission of a crime exclusion:
1. Murder: If the insured was actively committing a murder and was killed in the process, the exclusion likely applies.
2. Manslaughter: Involuntary or voluntary manslaughter charges related to the insured’s conduct can also void coverage.
3. Assault with a deadly weapon: If death occurs during an assault, especially when the insured is the aggressor, the claim may be denied.
4. Arson: Fires set illegally that lead to the insured's death often result in claim denial.
5. Robbery: If the insured died while robbing a store or person, the exclusion can apply.
6. Kidnapping: Participation in kidnapping that results in the perpetrator's death will trigger the exclusion.
7. Burglary: Death during the illegal entry of a property with intent to commit a crime is typically not covered.
8. Grand theft: Stealing large-value items or vehicles during which death occurs may lead to denial.
9. Carjacking: Violent vehicle thefts that result in death usually fall under felony exclusions.
10. Fraud: While not usually violent, fraud that leads to confrontation or fleeing may result in excluded scenarios.
11. Embezzlement: If the death occurs while fleeing charges or during arrest, insurers may attempt to apply the exclusion.
12. Money laundering: High-level financial crimes tied to organized crime or drug trafficking may be included.
13. Drug trafficking: Insured individuals involved in the illegal drug trade often face denied claims upon death.
14. Prostitution: In jurisdictions where it is illegal, deaths arising from related criminal conduct may trigger denial.
15. Extortion: Any death while extorting someone or during retaliation for such acts may fall within the exclusion.
16. Bribery: If bribery leads to criminal retaliation or other acts causing death, it may be excluded.
17. Perjury: Rarely leads to death, but could play a role in broader criminal proceedings.
18. Forgery: If tied to other felonious activities that lead to death, this may be cited by insurers.
19. Identity theft: If the insured dies while engaged in identity theft or related criminal activity, denial may occur.
20. Cybercrime: Though less likely to cause death, high-stakes cybercrimes tied to dangerous retaliation can trigger exclusions.
Does Every Death Related to a Crime Result in Denial?
Not necessarily. There are key questions that determine whether the exclusion applies:
Was the insured actively participating in the crime?
Was the criminal act the cause of death?
Was the insured charged or convicted?
Was the act a misdemeanor or a felony?
Does the policy explicitly exclude that type of crime?
If the insured was an innocent bystander or merely present at the scene, the exclusion likely won’t apply. Similarly, if the insured was killed by a criminal while not engaging in any wrongdoing, the claim should be payable.
Get Legal Help for Denied Claims Involving Crime Exclusions
If your life insurance claim has been denied based on the commission of a crime exclusion, don’t accept the insurer’s word at face value. These exclusions are often broadly interpreted by insurers and improperly applied. Our legal team has successfully overturned denials involving alleged felonies, ambiguous circumstances, and even pending investigations. We’ll review the policy, examine the facts, and hold the insurer to their burden of proof. If they can’t prove the exclusion applies, we’ll fight to get the benefits you’re rightfully owed.
Contact our top-rated life insurance attorneys today for a free consultation at 800-330-2274.
FAQ: Commission of a Crime Exclusion in Life Insurance
What is the commission of a crime exclusion in life insurance?
It is a clause that allows an insurer to deny payment if the insured dies while committing, attempting, or participating in a criminal act—usually a felony.
Does this exclusion apply to all crimes?
No. Most policies limit the exclusion to felonies. Misdemeanors and minor infractions may not be included unless specifically stated in the policy.
Can the insurer deny a claim without proof of the crime?
No. The burden of proof is on the insurer. They must show that the insured was actively involved in the crime and that it contributed to the death.
What if the insured wasn’t convicted?
Conviction is not always required, but the insurer must present clear evidence. Mere suspicion or pending charges may not be enough to deny the claim.
What if the insured was an innocent bystander during a crime?
Innocent parties killed during crimes committed by others are generally still covered. The exclusion applies only if the insured was an active participant.
Can the exclusion be challenged in court?
Yes. Courts often review whether the exclusion was properly applied and whether the insurer met its burden. Legal representation is essential for a successful challenge.
Are these exclusions enforceable under ERISA policies?
Yes, but ERISA adds a federal layer of regulation, and strict deadlines and rules apply. An experienced attorney can help navigate these legal challenges.
What if the policy doesn’t clearly define “crime”?
Ambiguities in policy language are typically interpreted in favor of the insured or beneficiary. Vague or undefined terms can be grounds for legal challenge.
Do insurers use this exclusion to avoid paying valid claims?
Unfortunately, yes. Some insurers broadly apply the exclusion even in borderline or unclear situations. This is why legal oversight is critical.
Can a claim be denied if the insured died during a police chase?
Possibly. If the insured was fleeing arrest or committed a crime that led to the chase, the insurer may argue the exclusion applies.
Is a policy voided entirely or just the specific claim denied?
Usually only the claim related to the excluded event is denied. The policy remains in force for other purposes unless rescinded for fraud.
Does this exclusion expire after a certain period?
Some policies apply it indefinitely, while others limit it to the contestability period (typically two years). The exact terms are stated in the policy.
What if the insurer delays the claim indefinitely during a criminal investigation?
Insurers may delay payment during investigations, but unreasonable delays can constitute bad faith. A lawyer can compel action or file suit for enforcement.
Can beneficiaries still file a lawsuit if the claim is denied under this exclusion?
Yes. Beneficiaries can file a lawsuit in state or federal court to challenge the denial and seek payment of the death benefit.