Our life insurance attorneys successfully recovered a $105,000 death benefit after Allstate denied a claim based on an alleged illegal activity exclusion. The insurer asserted that the insured’s death was connected to criminal conduct and therefore excluded from coverage. After a detailed legal review and presentation of contrary evidence, the denial was overturned and the full benefit was paid to the rightful beneficiary.
This case highlights a growing trend in life insurance denials. Insurers increasingly rely on felony and illegal activity exclusions that are vague, overbroad, or unsupported by the facts.
What Is a Felony or Illegal Activity Exclusion in Life Insurance?
Many life insurance policies contain clauses that limit or exclude coverage if the insured dies while committing a felony or engaging in criminal conduct. These provisions are intended to prevent payment when unlawful behavior directly causes death. In practice, insurers often stretch these exclusions beyond their intended scope.
Whether the exclusion applies depends on several factors:
The exact wording of the policy
Whether the conduct qualifies as a felony under state law
Whether the alleged crime caused the death
Whether there was an arrest, charge, or conviction
Whether the beneficiary was involved in the alleged conduct
Insurers frequently deny claims even when these elements are not met.
Common Criminal Activity Exclusions Cited by Insurers
Death During Commission of a Crime
If the insured dies while committing a felony such as robbery, drug distribution, or assault, insurers may attempt to deny coverage. Many policies require a direct causal connection between the crime and the death. That connection is often missing.
DUI Related Deaths
Some policies expressly exclude deaths caused by driving under the influence. Others rely on broader illegal activity language. Insurers often deny claims even when intoxication did not cause the fatal event.
Fleeing Law Enforcement
Deaths occurring while fleeing police or attempting to escape custody are commonly cited as excluded. These denials frequently rely on assumptions rather than proven facts.
Acts of Violence
If the insured dies during a physical altercation, insurers may label the incident criminal conduct even when no charges were filed or the insured was not the aggressor.
Terrorism or Treason Clauses
Some policies contain narrow exclusions related to terrorism or acts against the government. These clauses are rare and often misapplied.
The Slayer Rule and Beneficiary Disqualification
All states follow some version of the Slayer Rule. This legal doctrine prevents a beneficiary from collecting life insurance proceeds if they intentionally killed the insured.
Important limits apply:
The beneficiary must be proven to have caused the death
Accidental deaths do not trigger the rule
Mere suspicion is not enough
Some states require a criminal conviction
Insurers sometimes deny claims prematurely without waiting for legal determinations.
Why Criminal Activity Denials Are Often Wrong
Many felony based denials fail because:
No criminal charges were filed
The insured was not convicted of a felony
The alleged crime did not cause the death
The exclusion language is vague or ambiguous
The insurer relies on police reports rather than evidence
The beneficiary had no involvement in the event
Life insurance exclusions must be applied narrowly. Ambiguous exclusions are typically interpreted in favor of coverage.
How We Overturn Felony Exclusion Denials
In the Allstate case, we demonstrated that the alleged illegal activity did not meet the policy definition of an exclusion and was not the legal cause of death. Once confronted with evidence and applicable law, the insurer reversed its position.
Our approach includes:
Analyzing the exact exclusion language
Examining police and medical records
Identifying lack of causation
Challenging unsupported assumptions
Applying state specific contract and insurance law
Many criminal activity denials collapse under legal scrutiny.
Help With Denied Life Insurance Claims Based on Exclusions
If your life insurance claim was denied due to alleged criminal conduct, felony exclusions, or illegal activity, the denial should be reviewed immediately. These cases are highly fact specific and insurers frequently overreach.
Our firm handles life insurance claim denials nationwide involving Allstate and other major carriers. We focus exclusively on denied claims and work on a contingency fee basis. You pay nothing unless we recover benefits.
If an insurer claims a felony exclusion applies, that does not mean the denial is valid. It means the policy and facts need to be examined carefully before benefits are wrongfully taken away.