Jury Awards $113.85M in United of Omaha Rescission Case

[Northeast Agent]

Jury Awards $113.85M in United of Omaha Rescission Case | ThinkAdvisor

• A woman died less than two years after she bought life insurance.
• The case involves how courts, and juries, apply contestability period rules, which limit when insurers can challenge policy applications.
• United of Omaha says it will file an appeal.

 

[sshafran]

Jury Awards $113.85M in United of Omaha Rescission Case | ThinkAdvisor

• A woman died less than two years after she bought life insurance.
• The case involves how courts, and juries, apply contestability period rules, which limit when insurers can challenge policy applications.
• United of Omaha says it will file an appeal.

Wow - how do you "hide" or "forget to mention" COPD on a fully underwritten app...

 

[DHK]

Once contestability period is over... it's over.

 

[Newby]

Once contestability period is over... it's over.

Not totally. If you are talking millions there is still the crime of insurance fraud which doesn't end in 2-years. They have to pay the claim but they could still go after them for benefiting from a crime. I assume. I don't know of any cases where they have.

 

[DHK]

True, but it gets harder to prove fraud. Unless someone else was doing the medical exam other than the insured, it would just be harder to prove.

 

[scagnt83]

To prove fraud in this case, the owner of the policy would have had to know the insured was going to have an untimely death. And that they lied about health conditions.

 

[Newby]

To prove fraud in this case, the owner of the policy would have had to know the insured was going to have an untimely death. And that they lied about health conditions.

In many cases the owner of the policy in the insured are the same person.

 

[DonP]

Newby I disagree with what your saying . Fraud is if the the insured faked his death and collected .Mirepresentation is like this case she lied or maybe somebody didn’t lie and the dr’s records said something else . Read this case closely . After 2 yrs outside something like I said it’s Incontestable period . Moo screwed up and didn’t tell them within 2 yrs why it was rescinded. Since they waited 4 yrs the policy became incontestable. That was a shocker and I’m not understanding that.

Saw a case 4 yrs ago . Lady had 5 $1 mil policy’s . She was a housekeeper . The agent and daughter lied on her income and assets . The policy’s were 6 years old . They converted to term and sold 2 of them . The new ownership transfer was forged . The new owners after a yr murdered her . The FBI charged the agent and daughter with ins fraud . BUT the insurance proceeds were paid . The FBI Seized the money . The son sued his sister and said he deserved the money . He won a civil lawsuit . The FBI had to give the $5 mil to the son . So even in fraud the insurance CO’s still paid because the policy was incontestable.

 

[rousemark]

Newby I disagree with what your saying . Fraud is if the the insured faked his death and collected .Mirepresentation is like this case she lied or maybe somebody didn’t lie and the dr’s records said something else . Read this case closely . After 2 yrs outside something like I said it’s Incontestable period . Moo screwed up and didn’t tell them within 2 yrs why it was rescinded. Since they waited 4 yrs the policy became incontestable. That was a shocker and I’m not understanding that.

Yeah, the policy was only 7 months old when she died, well within the contestable period. The claim was filed and the claim denied. That should have been the end of the story. This involves a very strange reading what the contestable period means.

 

[LostDollar]

But the company asked for information and rescinded the policy within the two year contestability period.