Legal Question in Insurance Law in Texas

Life Insurance Co. Refusing To Pay

My father purchased a life insurance policy @ 1 1/2 yrs. ago. Since then, they have been deducting his monthly premiums from his checking acct. My father pasted away in Oct. 2002. My sister & I are his only children, and we are listed as beneficiaries. We sent all the required info. to the ins. co. @ 5 1/2 months ago. Last week we rec'd a letter from them refusing to pay. Claim it is due to my father passing from a pre-existing condition. Shouldn't they have done a medical history check prior to issuing this policy. If so, are they required to pay. If not, shouldn't we be reimbursed for all premiums paid, plus interest, and also financially compensated due to the fact that my father was under the impression the entire time that everything would be taken care of upon his death because he has this life insurance policy?


Asked on 3/19/03, 5:19 pm

1 Answer from Attorneys
Paul Velte IV Paul C. Velte IV, Attorney at Law

Re: Life Insurance Co. Refusing To Pay

This is why I hate insurance companies. They always grasp for any ground to deny claims. People think they are buying protetion when in reality all they are buying is the right to sue when their claim is denied. And since suing means you must spend *more* money out of pocket at a time when one is usually strapped financially, insurers get away with their ripoff because most people cannot afford to sue.

But in your case, it sounds as if the insurer violated time deadlines set forth under state law and--if you can prove it--Deceptive Trade Practices for hoodwinking your dad. Problem is, he's dead, and who else knows what they told him to sell him the policy??? If you're interested in pursuing this matter, I would be interested in discussing it with you.

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Answered on 3/21/03, 12:03 pm


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