After the death of a spouse or loved one who is providing you financial support, one of the first questions that arises is whether the decedent had life insurance. But even if there is a policy in effect, the insurance company may be telling you that payment is being delayed or possibly even denied because […]
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Disputes over life insurance often lead to unintended consequences as illustrated by Hall v. Metropolitan Life Insurance Co., 2014 U.S.App.LEXIS 8652 (8th Cir. May 8, 2014), which involved the designation of a beneficiary. In Hall, the 8th U.S. Circuit Court of Appeals ruled that someone other than the intended beneficiary was entitled to receive employer-sponsored […]
Can an employee’s obligation to provide evidence of insurability to secure life insurance be excused by the doctrine of incontestability or by an ERISA claim for breach of fiduciary duty?
A recent life insurance case involving the issue of incontestability caught our attention. Patterson v. Reliance Standard Life Ins.Co., 2013 U.S.Dist.LEXIS 171873 (C.D.Cal. December 4, 2013)(Issue: Incontestability). This case involved life insurance – the plaintiff’s sister was an employee of Redlands Community Hospital who was offered the opportunity to purchase $260,000 in voluntary group life […]
The continuation of life insurance coverage after employment ends is fraught with issues that frequently lead to litigation. Normally, group coverage ends on the last day of employment; however, most group life insurance policies have features that allow coverage to be converted to individual coverage, placing the onus on the employer to give notice of […]