Principal Ordered to Pay $10M Claim by Connecticut U.S District Court
Michael R. Smith
![Michael R. Smith]()
Michael R. Smith
President at The Financial Partners Group, LLC, Regional Principal at AimcoR Enterprise Insurance Group and Author of Tread Lightly
This case represents dangerous precedence for the life insurance industry. Had the dizziness been disclosed, I could easily see an underwriter postponing their decision to approve the policy until they knew more about the cause. Just goes to show how important it is to be thorough if involved in the submission of a life insurance application. Please read the following article about this case:
Mike Smith is President of TFP Brokerage, a Charter Member of PolicyCheck and Author of Tread Lightly, A Guide to Life Insurance for the Affluent Client. He can be reached at [email protected] or 678.338.4384.
Experienced, strategic leader in financial services
8 年The article clearly states that several doctors felt no need to investigate further. Take out the senior underwriter who has a clear bias toward the company, and it makes you wonder if the material fact would have come into play. I can see where the judge made this ruling. I'm sure it will be appealed.
Principal at The Law Office of Marshal S. Grant
8 年But what's the connection between the ENT visit and the brain cancer? Unless revelation of that visit could reasonably be expected to lead to discovery of the brain cancer, it doesn't seem material. It was omitted yes, but why was it material?
President at The Financial Partners Group, LLC, Regional Principal at AimcoR Enterprise Insurance Group and Author of Tread Lightly
8 年Agreed. This is what I meant by "dangerous precedence."
Field Underwriter & Insurance Educator, in Rock Spring, Georgia and Rocky Mount, North Carolina
8 年I think that the Judge was wrong in her decision. There seemed to be a clear omission of material facts in that the ENT visit was not disclosed to the company prior to policy issuance.