Life Insurance

Life Insurance Proceeds – Who Gets Them?

March 31, 2012 | Mark S. Humphreys

Policy holders in Grand Prairie, Arlington, Fort Worth, Dallas, and other places in the Dallas – Fort Worth metroplex area may want to know the answer to the title of this article.

The Salt Lake Tribune printed an article on March 6, 2012, that dealt with this issue to a degree. The title of the article is, New Legal Battle Over Powell Insurance Policies. This article discusses what happened in the present case. At the end of this article, you will get the answer as it relates to Texas Insurance Law.

The article tells us that nine days after Josh Powell killed himself and his two sons in a horrific fire at his home in Washington state, two of his siblings filed claims on insurance policies worth $1.5 million — a move that has now prompted the insurer to ask a U.S. District Court to sort out who, if anyone, is entitled to the money.

Life Insurance Beneficiary

March 22, 2012 | Mark S. Humphreys

Insurance policy holders in Grand Prairie, Fort Worth, Burleson, Benbrook, Crowley, Joshua, Lake Worth, Cleburne, and other places in Tarrant County and Texas may want to know about this case. It involves the naming of a life insurance beneficiary in a life insurance policy and Texas law.

This case was decided by the United States Fifth Circuit Court of Appeals. The opinion was issued on February 9, 2012. The style of the case is, Provident Life And Accident Insurance Company v. Jill Cleveland, et. al. Here is the case.

This was an interpleader action filed to determine who should receive the proceeds of a life insurance policy. Shona Cleveland, the former wife of decedent Gerald Cleveland, appealed from the district court’s grant of summary judgment in favor of Jill Cleveland, who was Gerald’s wife at the time of his death.

Beneficiary Of Life Insurance Policy : Unusual Case

February 26, 2012 | Mark S. Humphreys

People living in Grand Prairie, Arlington, Mansfield, Fort Worth, Hurst, Euless, Bedford, and other places in Texas who are named beneficiaries under a life insurance policy might find this next case unusual. Here is some background.

This is a United States Northern District case decided in 1999. The style of the case is Benbow v. All American Life Insurance Company.

All American Life Insurance Company and General American Life Insurance Company each insured Daniel Benbow under whole life insurance policies that provided coverage of $100,000. Approximately seven months before Daniel’s death, letters were sent to both carriers requesting cancellation of the policies and further requesting that the carriers remit any accumulated cash value of the policies. Both carriers honored the request and issued checks to Daniel for the current value of the policies. After Daniel’s death, Diana Benbow contacted the carriers and notified them that Daniel suffered from a bipolar disorder, and she requested that the carriers deem the cancellation of the policies to be invalid. The carriers contended that the policies had been surrendered, and refused to pay the claim for benefits. Diana then sued both carriers in state court alleging breach of contract, violations of the Texas Insurance Code and violations of the Texas Deceptive Trade Practices Act (DTPA). The carriers removed the case to federal district court. Thereafter, the carriers moved for summary judgment on all causes of action.

Misrepresentation In Insurance Policy Application

February 25, 2012 | Mark S. Humphreys

People in Weatherford, Aledo, Brock, Millsap, Mineral Wells, Springtown, Willow Park, Hudson Oaks, and other places in Parker County need to understand that the ways they fill out an insurance application can be important.

Here is a case where the insurance company lost the argument that the information in the policy application was incorrect. The style of the case is Fredonia State Bank v. General Life Insurance Company. The opinion in the case was issued in 1994 by the Texas Supreme Court. Here are the facts of the case.

The insured person died as the result of a gunshot wound to the head. Prior to his death, he had purchased two life insurance policies, each in the amount of $250,000 issued by General American Life Insurance Company. General American denied the beneficiary’s claims for benefits. Fredonia State Bank, an assignee of one of the two policies and executor of the insured’s estate, sued to collect the proceeds of the policy.

Life Insurance And Premium Payments – 2 Cases

February 23, 2012 | Mark S. Humphreys

Policy holders in Grand Prairie, Fort Worth, Benbrook, Hurst, Euless, Bedford, Saginaw, Newark, Roanoke, Keller, Grapevine, and other places in Texas might wonder about how premium payments affect coverage. Here are two cases dealing with premium payments and both might seem kind of strange but for these folks they were real and had to be dealt with.

The first case is a Dallas Court of Appeals case decided in 2004. The style of the case is Royal Maccabees Life Insurance Company v. James. Here are some of the facts.

Royal Maccabees Life Insurance Company was sued by the surviving spouse of a police officer seeking an additional $50,000 in life insurance proceeds after the insurer paid the basic $50,000 upon the officer’s death. It was undisputed that the insured applied for the additional $50,000 in coverage. It was also undisputed, however, that the insurer never sent a letter to the insured approving the disputed benefits as required by the insurance policy. The insurer denied the additional $50,000 in coverage and refunded the premiums paid for this coverage. The trial court entered judgment on the jury finding that the insurer breached the contract, committed fraud, and violated the Deceptive Trade Practices Act, the Texas Insurance Code and the duty of good faith and fair dealing. The judgment included mental anguish damages, punitive damages, attorney’s fees and pre-judgment interest. An appeal was filed.

Life Insurance Attorney And Policy Lapse

February 21, 2012 | Mark S. Humphreys

Fort Worth residents and insureds in Grand Prairie, Weatherford, Arlington, Dallas, Saginaw, Grapevine, Aledo, and other places in Texas would want to have some knowledge about what constitutes a “lapse” in their life insurance policy. Here is a case that gives some insight.

This is a 2000, case decided by the San Antonio Court of Appeals. The style of the case is MacIntire v. Armed Forces Benefits Association. Here are some facts.

Linda and Scott MacIntire submitted a joint application for term life insurance to the Armed Forces Benefit Association (AFBA) in April 1996. The payments were to be made automatically via a computerized bank deposit scheme, but for unknown reasons, the payments were never made. The few payments that the MacIntires did make were not enough to keep the policy in force and it lapsed on March 31, 1998 according to AFBA. Scott MacIntire died from a terminal illness in August of 1998 and Linda inquired regarding the policy in September of that year. Upon discovery of the failed automatic deposit setup, Linda tried to pay delinquent payments directly to AFBA, but AFBA denied the payments and coverage, stating that Scott’s policy had already been canceled. Linda sued AFBA, alleging violation of the Texas Insurance Code, violations of the Texas Deceptive Trade Practices Act (DTPA), breach of contract, negligence, breach of duty of good faith and fair dealing, breach of implied warranty, and ambiguity of contract, seeking to recover the death benefits and additional damages. The trial court granted AFBA’s motion for summary judgment on the basis that no genuine issue of material fact existed. Linda appealed, claiming that genuine issue of material fact existed in her claims for breach of contract, breach of implied warrant and ambiguity of contract, DTPA violations, Texas Insurance Code, Section 541.060, breach of duty of good faith and fair dealing, and negligence.

Suing On A Life Insurance Policy, Who Can Do It?

January 19, 2012 | Mark S. Humphreys

A natural question for someone in Grand Prairie, Fort Worth, Dallas, Arlington, or anywhere else in Texas to wonder about. Can the policyholder sue? Can the beneficiary sue? Can an estate administrator sue? The answer is one of those that depends on the facts and circumstances. Here is a case that gives some guidance.

The case is out of the San Antonio Court of Appeals and the opinion was issued in 1996. The style of the case is Mendoza v. American National Life Insurance Company. Here are the facts:

Jerry Mendoza purchased a $25,000 life insurance policy from American National on August 1, 1991. Carrion was a named beneficiary of the policy. The October premium was not paid. The policy provided for a 31 day grace period. On November 1, 1991, the last day of the grace period, American National’s district manager, Sitka, verbally agreed to extend the grace period until November 4, 1991. The policy, however, specifically provided that only American National’s president, vice-president or secretary had the authority to extend this time period. Jerry Mendoza died in an automobile accident on November 3, 1991. The premium was never paid. In a prior appeal, this court affirmed a summary judgment in favor of American National on Mendoza’s breach of contract, negligence and bad faith claims. This appeal concerns the trial court’s granting of summary judgment on Mendoza’s claims for intentional infliction of emotional distress, Insurance Code and DTPA violations.

Life Insurance Claims

January 14, 2012 | Mark S. Humphreys

Residents of Grand Prairie, Arlington, Fort Worth, Dallas, and other areas in the State of Texas would want to understand what happens when a policy payment is missed. The following case is one where the policy ended up lapsing. An experienced Insurance Law Attorney may have been able to get a different result.

The case is State Farm Life Insurance Company v. Beaston. The case decided in 1995, by the Texas Supreme Court. Here is some background.

Beaston purchased a graded premium whole life policy from State Farm. The premium on the policy was due on 12/28/93. The thirty-one day grace period expired on 1/28/94. Three days after the expiration of the grace period, Beaston died in an automobile accident. State Farm refused to pay benefits because coverage had expired. Beaston’s wife, the beneficiary, brought suit alleging that the policy remained in force because of its dividend-at-death provision. The trial court found the policy ambiguous and instructed a verdict in favor of Beaston with respect to coverage.

Life Insurance Misrepresentation

January 10, 2012 | Mark S. Humphreys

People in Weatherford, Mineral Wells, Aledo, Hudson Oaks, Willow Park, Brock, Millsap, Springtown, Cool, Peaster, and other places in Parker County might be interested in this life insurance case.

The case is a 1996, opinion issued by the Southern District of Texas. The style of the case is Bates v. Jackson National Life Insurance Company. Here are some facts.

Bates’ children sued Jackson National for proceeds of a life insurance policy issued to Bates. The children asserted causes of action for breach of contract, bad faith, Insurance Code violations and DTPA violations.

When Can An Insurance Company Declare A Policy Void?

August 27, 2011 | Mark S. Humphreys

If you live in Grand Prairie, Arlington, Fort Worth, Saginaw, Haslet, Newark, Rhome, Benbrook, Lake Worth, Crowley, Mansfield, or anywhere else in North Texas, there is a chance you have a life insurance policy. Naturally you would expect that the policy would pay the intended beneficary. Well, that is not always the case, particularly if the insurance company can show misrepresentations in the policy application. Whenever they try to do this, it is vital that an experienced Insurance Law Attorney be contacted.

The Texas Supreme Court took on this issue in a case decided in 1980, styled, Mattie Emmaline Mayes v. Massachusetts Mutual Life Insurance Company. Here are some of the facts in the case.

On May 6, 1976, Albert Mayes signed and delivered to an agent, Part 1 of two applications for life insurance. Mays had not disclosed to Mutual Life that certain answers in his application which were correct when made had become false by the time the policies were delivered. The two policies were identical except for the amount of coverage.