Case Conclusion Date:July 12, 2006
Description:This case involved the pre-suit settlement of several life insurance claims for $6,500,000.00, over 92% of the value of the policies. The Insurer wrote $7,000,000.00 in coverage on an 80 year old man with a history of bladder cancer, longstanding high blood pressure and a cardiac conditions called a "first degree atrioventricular block." The insured died less than two years after becoming insured. The insurer refused to pay the life insurance benefit, asserting that the deceased had not disclosed important information about his cardiac history on his policy applications. Counsel developed expert proof demonstrating that the insured had in fact disclosed everything of which he was aware, that the insurance company knew everything it needed to know when agreeing to write the policy, and that its asserted defense was illegal. After considering counsel’s letter requesting reconsideration, the insurer settled the claims for 93% of the value of the policies.