Most life insurance policies include exclusions that limit or prevent payouts in specific scenarios. The commission of a crime exclusion is one such clause. It typically states that no benefit will be paid if the insured's death occurs while engaging in illegal activity, regardless of whether the act was a felony or misdemeanor.
Importantly, the policy doesn’t need a conviction to trigger this clause. Even alleged involvement in criminal conduct can be enough for the insurer to delay or deny a payout. This is where many disputes arise. Insurance companies may apply the exclusion broadly and unfairly, often without enough evidence. If you have Wyoming life insurance claim issues call us.
Common Scenarios That Trigger This Exclusion
This exclusion is often applied in ways that surprise beneficiaries. Here are several real-life examples that show how it plays out:
1. Fleeing from Law Enforcement:
A man in Pennsylvania died in a car accident while attempting to evade police during a traffic stop. Even though he wasn’t charged with a violent crime, the insurer argued that fleeing constituted illegal behavior. The claim was denied under the crime exclusion.
2. Trespassing Incident Gone Wrong:
In Missouri, a policyholder died from electrocution while trying to steal copper wiring from a vacant warehouse. The insurance company rejected the claim, citing the commission of a crime exclusion due to the burglary.
3. Bar Fight Resulting in Death:
A young man in Florida got into an altercation at a nightclub. During the fight, he was fatally stabbed. Though he was the victim, surveillance footage showed he threw the first punch. The insurer used that evidence to apply the crime exclusion, claiming he was committing battery.
4. Alleged Drug Sale:
In Georgia, a man was shot and killed during what police suspected was a drug transaction. No charges were ever filed, but the insurance company still denied the life claim, arguing the death occurred during the commission of an unlawful act. The family disputed the claim, citing lack of proof and absence of a conviction.
5. Self-Defense Claim Backfires:
A woman in Texas shot and killed an intruder but was later charged with manslaughter after prosecutors questioned the self-defense claim. Her life insurance was denied under the crime exclusion when she died during a subsequent home invasion incident that she allegedly provoked.
No Conviction Required for Denial
One of the most frustrating aspects of the commission of a crime exclusion is that insurers do not have to wait for a conviction. Many claims are denied purely on allegations. Police reports, witness statements, and even assumptions based on the circumstances of the death are sometimes enough for the insurer to avoid paying.
This places beneficiaries in a vulnerable position. Not only are they grieving, but they are also forced to defend the deceased’s actions, sometimes without any legal resolution in sight. Even if charges are dropped or the insured is later cleared, the claim denial often remains in place unless legal action is taken.
What to Do if a Life Insurance Claim Is Denied Under This Exclusion
If your claim has been denied due to the commission of a crime exclusion, do not assume the insurer is correct. These exclusions are often applied too broadly or based on incomplete information. You have the right to challenge the denial, and many families have successfully overturned such decisions with legal assistance.
For example, we handled a case in Illinois where a man was denied benefits after being shot while allegedly attempting a robbery. The family provided evidence that he was actually defending himself during a home invasion. The insurer reversed the denial once confronted with surveillance footage and an affidavit from law enforcement contradicting their original findings.
In another case in New Jersey, a beneficiary was denied because her brother was accused of assault during a traffic altercation. We uncovered dashcam footage that showed he acted in self-defense and was never charged. The insurer paid the full policy amount after we threatened legal action.
Why Legal Help Is Crucial
These exclusions are legally complex. Insurers often rely on vague language, unproven allegations, or technicalities to deny legitimate claims. An experienced life insurance attorney can review the denial letter, assess the evidence, and negotiate or litigate the claim. In many cases, denials are reversed without needing to go to court.
If your loved one died in an incident that the insurer claims was a crime, do not face it alone. We routinely handle life insurance denials based on crime exclusions and know how to challenge these decisions effectively. With millions recovered for families across the country, we are equipped to push back and get results.
Conclusion
The commission of a crime exclusion is one of the more misunderstood and misapplied clauses in life insurance policies. Insurers often use it to sidestep payouts in tragic or ambiguous situations, leaving families without financial support. Fortunately, these denials can often be challenged and overturned. With the right legal representation, you may still recover the benefits your loved one intended you to have.