$105,000 Denied Life Insurance Claim Successfully Recovered
We are proud to announce the successful resolution of a $105,000 life insurance claim that was initially denied. The insurer cited a policy exclusion related to the insured’s alleged involvement in illegal activity at the time of death. After our legal team conducted a detailed review and presented new evidence, we overturned the denial and secured the full benefit for the rightful beneficiary. This case highlights the increasing number of denials based on felony exclusions and other vague policy provisions that insurers often use to avoid paying valid claims.
What Are Felony Exclusions in Life Insurance Policies?
Felony exclusions refer to clauses within life insurance policies that may bar payment of the death benefit if the insured’s death was connected to a felony or criminal act. These exclusions are intended to prevent payouts in situations where the insured’s own unlawful conduct directly contributed to their death—or where the beneficiary was involved in criminal activity that disqualifies them from receiving benefits.
These exclusions are commonly cited by insurers, but they are often broadly interpreted, sometimes unfairly. Whether or not the exclusion is valid depends heavily on policy language, state law, and the specific facts of the case.
Common Felony and Crime-Related Exclusions in Life Insurance Policies
Below are examples of felony exclusions that insurers may use to justify a denied life insurance claim:
1. Murder by the Beneficiary
If a beneficiary is convicted of murdering the insured, they are disqualified from receiving any benefit under the Slayer Rule, which is recognized in every state.
2. Voluntary Manslaughter
Even if the killing was not premeditated, a conviction for voluntary manslaughter may still bar the beneficiary from receiving life insurance proceeds.
3. Death During the Commission of a Crime
If the insured dies while committing a felony—such as robbery, drug trafficking, or assault—the insurer may invoke the criminal activity exclusion and deny the claim.
4. DUI-Related Deaths
Some policies exclude death benefits if the insured was driving under the influence of drugs or alcohol and died in a crash. Even if DUI isn't specifically listed as an exclusion, insurers may argue it constitutes illegal or reckless behavior.
5. Attempting to Escape Custody
If the insured dies while fleeing police custody or attempting to escape jail or prison, the policy may exclude coverage due to involvement in a crime.
6. Acts of Terrorism or Treason
If the insured was involved in an act of terrorism or treason against the United States, some policies may contain specific exclusions denying any payout.
7. Death Resulting from Abuse
Policies may contain exclusions if the insured's death was caused by child abuse, elder abuse, or domestic violence—and in some cases, the alleged abuser may be the beneficiary, leading to legal challenges under the Slayer Rule.
Other Common Life Insurance Exclusions That Can Lead to Denied Claims
Felony-related exclusions are just one category. Life insurance policies may also contain broader exclusions that insurers frequently cite as reasons to deny payouts:
1. Misrepresentation on the Application
If the insured provided false information—intentionally or not—about their health, lifestyle, or medical history, the insurer may rescind the policy during the contestability period (typically the first two years).
2. Undisclosed Pre-Existing Conditions
If the insured failed to disclose a serious condition like cancer, heart disease, or diabetes, and died from a related cause, the insurer may deny the claim.
3. Hazardous or Illegal Activities
Deaths resulting from unreported high-risk activities such as rock climbing, base jumping, or engaging in illegal drug activity may fall under policy exclusions.
4. War or Military Service
Some policies exclude coverage for active military service or deaths that occur in war zones. This is especially relevant for policies issued to service members or contractors.
5. Aviation Accidents
Private plane crashes or deaths involving non-commercial flight may be excluded if the insured failed to disclose aviation activity or was not a licensed pilot.
6. Natural Disasters
Some older or niche policies contain exclusions for “Acts of God,” such as earthquakes, floods, or hurricanes, though these exclusions are rare in modern policies.
7. Lapsed Policies Due to Non-Payment
If the policyholder missed premium payments and the grace period expired, the insurer may claim the policy lapsed. However, errors in notification or billing may give beneficiaries grounds to challenge the denial.
Fighting Back Against Felony and Exclusion-Based Denials
Insurers frequently deny life insurance claims based on exclusions that are broad, vague, or misapplied. In many cases, the alleged felony may never result in conviction, or the insured’s role in a crime may be minimal. In other cases, beneficiaries are unfairly punished for crimes they didn’t commit or events that do not meet the legal standard of an exclusion.
Our law firm has successfully challenged felony-related and exclusion-based denials by:
Demonstrating lack of causal connection between the crime and the death
Proving the exclusion was ambiguous or unenforceable
Showing the beneficiary was not legally disqualified under the Slayer Rule
Providing evidence that policy lapse or non-payment was caused by the insurer’s error
Frequently Asked Questions
Can a life insurance claim be denied if the insured was committing a crime at the time of death?
Yes, many policies contain exclusions for deaths that occur during the commission of a felony or illegal activity. However, the crime must typically be a direct cause of the death, and this can often be challenged in court.
What is the Slayer Rule in life insurance?
The Slayer Rule prohibits a beneficiary from receiving the death benefit if they are convicted of intentionally killing the insured. All states follow some version of this rule.
Does a DUI crash void life insurance coverage?
Some policies explicitly exclude coverage for deaths caused by intoxicated driving. Even without a clear exclusion, insurers may argue that DUI-related deaths fall under general illegal activity exclusions.
Are criminal convictions required to apply felony exclusions?
Not always. Insurers may deny a claim based on evidence of criminal behavior even without a conviction. However, the denial can often be challenged if no charges were filed or the death was unrelated to the alleged act.
Can life insurance be denied if the beneficiary was involved in the insured’s death?
Yes. If the beneficiary played a role in causing the death—especially criminally—they may be barred from recovery under the Slayer Rule or applicable exclusions.
What if the policyholder didn’t know about an exclusion?
Insurers must provide clear disclosure of policy exclusions. If an exclusion was hidden or not communicated properly, it may be unenforceable under state law.
Do all life insurance policies have felony exclusions?
Not all. Some have more narrowly tailored exclusions, while others contain broad illegal activity clauses. The specific language of the policy determines what is excluded.
Can a denied claim based on criminal activity be appealed?
Yes. Many felony-related denials are overturned through legal appeals, especially when the connection between the alleged crime and the death is weak or nonexistent.
How can your firm help with denied life insurance claims?
We specialize in overturning wrongful denials based on felony exclusions, misrepresentation, policy lapse, and more. Our team builds strong legal cases backed by evidence and challenges insurers in court when necessary.
Do you offer free consultations?
Yes. We provide free case evaluations and work on a contingency fee basis—meaning you pay nothing unless we win your case.