Virginia federal court recently upheld a suicide exclusion contained in a supplemental group life insurance policy even though the beneficiary argued that the insured lacked the mental capacity to commit suicide. The insured, a former Navy SEAL, took his own life in 2014. The plan administrator denied the beneficiary’s claim for the policy proceeds on…
A Pennsylvania federal court recently entered a default judgment against a financial advisor who was alleged to have participated in a rebating scheme involving the sale of a life insurance policy to one of his clients.
PWPG, LLC purchased a policy on the life of Herschel White, one of its principals. Although in the policy application, White denied having ever used or been treated for using illegal drugs, Primerica discovered—within the contestable period—a history of cocaine use. It rescinded the policy.
The U.S. District Court dismissed charges of breach of contract against American General Life Insurance Company in a case where it refused to pay the policy’s death benefit based on its suicide clause.
The First Circuit Court of Appeals dismissed a putative class action against John Hancock Life Insurance Company over its handling of unclaimed death benefits. Richard Feingold, the plaintiff, brought the suit after determining that his deceased mother had a Hancock policy and he had not been notified of its existence by the carrier.
The policy owner had been borrowing against his policy, until it lapsed subject to his outstanding loan. The taxpayer contended that the amount realized on the policy lapse included only the loan principal, not the interest that had accrued on the loan during its term. The Tax Court, in a memorandum decision, disagreed.