Widower, Industry Seek Change in Mass. Life Insurance Claims Law

May 13, 2008

  • May 13, 2008 at 12:28 pm
    lastbat says:
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    This actually sounds like decent legislation – though it should be unnecessary. The whole purpose of the check-up before issuing the policy is to determine if the would-be insured is healthy. I assume that it also includes a medical background check (it’s been too long since I purchased life insurance, so don’t remember). The presumption of health based on a good-faith effort to determine health-status makes sense. And it keeps the insurer’s ability to ferret out fraud. Good stuff here.

  • May 13, 2008 at 3:00 am
    tom says:
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    Actually, this entire story sounds bizarre. She passed the company physical, had no actual knowledge or diagnosis at the time of the application, and let’s assume for the sake of argument that the “known or should have known” phrase doesn’t apply here. So, does that mean a life insurer gets two bites at the apple when it comes to underwriting? Make you fill out an app and take their stupid medical tests, and even if cleared and the company takes your money, they still have a chance to reject the claim? And, it takes LEGISLATION for everyone to understand that this is wrong and unethical?

    I’ve made my living in the insurance industry for 34 years, but sometimes I think this business is the most idiotic venture I’ve ever heard of.

  • May 13, 2008 at 3:11 am
    Bill says:
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    I’ve never heard of any state law making the insured prove they were healthy after you’ve taken the physical. Most life companies would love to insure healthy 30-yr olds. If anyone dies in the first year the company will investigate, but unless fraud is proved they pay. This 1920 law is definitely bizarre.

  • May 13, 2008 at 3:13 am
    June says:
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    This is so wrong. Things like this is what gives the insurance industry a bad name.

    The company had every chance to decline but they were satisfied that she was a good risk.

  • May 13, 2008 at 6:03 am
    I give them some credit says:
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    At least SBLI stepped up an changed their policy and are supporting legislative changes. Shows some compassion on their part.



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