White Collar Crime Life Insurance Claim Denial Cases: Legal Disputes Over Felony Exclusions
White collar crime can create complex legal challenges when it comes to life insurance claims, especially when felony exclusion clauses are involved. These clauses often stipulate that a claim will be denied if the insured dies while committing or attempting to commit a felony. Below are some notable life insurance claim denial cases involving white collar crime, where beneficiaries and attorneys have fought back against the insurance companies' denials.
1. Midland National Life Insurance Claim Denial
Case Overview: The beneficiary’s father, who was involved in a fraud scheme, died in an accident. He had purchased a life insurance policy before the scheme and had named his son as the beneficiary. However, the insurer rejected the claim based on the policy’s felony exclusion clause, arguing that the insured died while committing a felony—his fraudulent activities.
Legal Challenge: The beneficiary hired a life insurance attorney, who wrote a brief and negotiated a settlement. The argument was that the insured’s criminal activity was not directly linked to his cause of death.
Outcome: The case was settled after the life insurance attorney successfully negotiated on behalf of the beneficiary.
2. Globe Life Insurance Claim Denial
Case Overview: A wife filed a claim after her husband died of a stroke while under investigation for tax evasion. The husband had purchased the life insurance policy before the investigation but did not disclose his tax liabilities or income at the time of applying for the policy. The insurer denied the claim, citing the felony exclusion clause, claiming the insured was involved in felony activities.
Legal Challenge: The wife hired a life insurance lawyer who argued that her husband died of natural causes (a stroke), not as a result of committing or attempting to commit a felony. The attorney negotiated a settlement with the insurer.
Outcome: The case was settled after a successful negotiation with the insurer, emphasizing that the cause of death was unrelated to any felonious actions.
3. Equitable Life Insurance Claim Denial
Case Overview: The beneficiary’s father, who was under investigation for embezzling funds, died of a heart attack. The insured had purchased a life insurance policy before his embezzlement scheme and had not disclosed his legal troubles. The insurer rejected the claim based on the felony exclusion clause.
Legal Challenge: The daughter hired a life insurance lawyer, who argued that her father’s death was caused by a pre-existing medical condition (heart disease) and not related to the felony activities. The attorney successfully negotiated a settlement.
Outcome: The insurer settled the claim after the lawyer presented evidence that the insured’s death was not connected to his embezzling activities.
4. Progressive Life Insurance Claim Denial
Case Overview: A woman submitted a claim for a $400,000 death benefit after her husband died of a heart attack while involved in money laundering. He had purchased the life insurance policy before his illegal activities and did not disclose his criminal past. The insurer denied the claim, citing the felony exclusion clause.
Legal Challenge: The wife hired a life insurance attorney, who argued that her husband’s heart attack was unrelated to any criminal activities and was instead caused by natural health factors. The attorney successfully negotiated a settlement.
Outcome: The case was settled after the attorney presented a strong argument that the insured’s death was unrelated to his money laundering activities.
5. American Life Insurance Claim Denial
Case Overview: The beneficiary filed a claim after his brother died while using stolen credit cards. The insured had purchased the life insurance policy before his involvement in credit card fraud and had not disclosed his criminal history. The insurer denied the claim, invoking the felony exclusion clause.
Legal Challenge: The beneficiary hired a life insurance lawyer, who argued that the insured’s criminal activities were not the direct cause of death. The attorney negotiated a settlement, emphasizing that the death was not linked to the commission of a felony at the time of death.
Outcome: The case was settled after the lawyer’s efforts to demonstrate that the insured’s actions were unrelated to his cause of death.
How Life Insurance Attorneys Can Help in White Collar Crime Cases
Life insurance disputes related to white collar crime can be complex due to felony exclusion clauses. If your claim has been denied based on a felony exclusion, our experienced attorneys can assist you in the following ways:
Reviewing the Policy: We will thoroughly review the policy’s terms and conditions, including the felony exclusion clause, to understand how it applies to your case.
Challenging Denials: We will challenge the insurer’s denial by investigating the facts surrounding the insured’s death and presenting evidence that the death was not related to criminal activity.
Negotiating Settlements: If necessary, we will negotiate with the insurance company to reach a fair settlement on your behalf, ensuring you receive the benefits you are entitled to.
FAQ Section
What is a felony exclusion in life insurance policies?
A felony exclusion clause in life insurance policies typically states that the insurer will not pay out benefits if the insured dies while committing or attempting to commit a felony. This includes crimes like theft, fraud, or money laundering.Can a life insurance claim be denied if the insured was involved in a white collar crime?
Yes, if the insured was committing or attempting to commit a felony, such as fraud or embezzlement, the life insurance company may invoke the felony exclusion clause and deny the claim. However, this can often be contested if the criminal activity is not directly related to the cause of death.How can I challenge a life insurance claim denial based on a felony exclusion?
Our attorneys can help challenge the denial by presenting evidence that the insured’s death was unrelated to their criminal activities or that they were not committing a felony at the time of death.