Life Insurance / Breach of Duty of Good Faith Question
Insured pays life policy premiums for several years then gets so ill she is in hospital for several months and dies. Insurance company denies coverage due to policy lapsing due to non-payment (because insured couldn't make premium payment while in hospital).
Answer: Often, life insurance policies are written with a premium waiver provision which waives payment of premiums when the insured is totally disabled. You need to be sure and check and see if there was such coverage on this policy.
Posted on Mon, October 15, 2012
by Sharon Coleman filed under