Life insurance claim denial cases are usually based on the insurance company’s assertion that the insured made misrepresentations in the life insurance application. A 2021, opinion from the United States 5th Circuit needs to be read when handling these types of cases. The opinion is styled, Mirna Guzman v. Allstate Assurance Company.
In this case, Saul Guzman died after suffering a seizure. He was 28 years old. Mirna, Sauls wife and the beneficiary of the policy made a claim for policy proceeds. Allstate rescinded the policy and refused to pay and a lawsuit resulted. Allstate filed a motion for summary judgment and the District Court granted the motion in favor of Allstate. This Court reversed that ruling.
In the life insurance application process, Saul answered a question in the negative about using tobacco or nicotine. Evidence appears to show the answer should have been yes.