May 22
Young widower pushes for change in Mass. life insurance law
Here’s a story about a woman who got approved for a life insurance policy and one year later she died of an aggressive form of breast cancer. The company tried to deny the claim even though she cleared the medical exam. They said she much have been sick before they agreed to insure her. This took place in Mass. and although the company settled, her husband is pushing for a law that would “force an insurer to prove a person misrepresented his well-being or should have known he was not in good health based on active symptoms of a serious change in health in order to deny a claim.” According to the article, under current standards, the responsibility rests with the insured person to prove he didn’t know he was ill.
Please note…in most states, “good health” is clearly defined in insurance laws but in Mass. the courts have relied on precedent set in cases dating back to 1920 that put the burden on policyholders to demonstrate that they were in good health when the policies were issued.
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