Insurer Sued Over Death Bets Gone Bad

Leslie Scism of the Wall Street Journal reports that several insurers have filed hundreds of lawsuits during the past two years seeking to cancel life insurance policies that the insurers say were not intended as an "estate planning tool" but rather were crafted to enrich investors speculating on people's lives.

Some investors are striking back, saying that insurers encouraged sales to investors and that the industry called attention to the practice only when its profits were less than expected. Investors want insurers to honor the policies or refund all premiums they have paid. Some seek punitive damages.

So insurance isn't "speculating"? Says who? Who are insurers kidding? Isn't that what insurance is all about? The insurer is like the" house" at a casino. Insurance companies bet you will not die, not wreck your car, or will not get sick, etc, and the insured bets that he will die or will wreck the car, and will get sick!

Can you imagine what would happen in Las Vegas if the casino said, "Hey these games are for entertainment only; we should not have to pay off because some gamblers are good at it!"

They Did It Again: AIG Wrongly Denied Claim for Veteran

They're at it again!

American General Life Insurance Co. wrongly refused to honor a life insurance policy held by an Iraq war veteran who died while recovering from post-traumatic stress disorder, a lawsuit filed by the soldier’s parents claims. The soldier, Andrew White, joined the Marine Corps Reserve in July 2003 and served as a combat engineer, disarming "improvised explosive devices" and patrolling areas near Iraq's border with Syria.

Denying the claim, AIG has cited a previously undisclosed car accident involving the soldier as the reason for denying the claim. The lawsuit seeks the full value of the policy and other unspecified damages.

Ah...it's in their nature to find any reason not to pay! They're addicted to "bad faith."

Andrew Clevenger, The Charleston Gazette 08/18/2008 Read Article: The Charleston Gazette

Allstate Hurricane Trial: Policyholders Got Conflicting Information

Policyholder Robert Weiss, who sued Allstate Insurance Co. after his home was destroyed by Hurricane Katrina, pointed out that because hurricanes are wind and water, to exclude coverage of either one of those causes of damage is "ridiculous." One issue the trial explores is whether an engineering report produced by a consulting firm was altered to favor the insurers' position. Associated Press, New Orleans Times-Picayune 04/11/2007 Read Article: New Orleans Times-Picayune