The story goes that back in the 19th century, some life insurance companies were not fond of paying claims. Apparently, after the insured died, life insurance companies would regularly investigate and if a misstatement was found in the application, would then deny the claims. According to Steven Rothschild of the LIFE Foundation, the various states responded by passing incontestability statutes. Absent outright fraud, or failure to pay premiums, these incontestability statutes limited the … [Read more...]
Investigating Death During A Life Policy’s Contestability Period Is Not Bad Faith
February 25, 2014 by