This 2018, Fort Worth Court of Appeals opinion is unique and involves a situation most life insurance lawyers will not ever see, however, it is worth knowing about due to some of the ruling by the appeals court. The case is styled, Old American Insurance Company v. Lincoln Factoring, LLC.
Lincoln is an assignee of a portion of benefits under a life insurance policy. Lincoln was assigned a portion of the benefits by the life insurance beneficiary for advancing costs of the burial of the insured. The insured had a life insurance policy with Old American.
When the insured died, the beneficiary made a claim for benefits. Instead of paying the benefits, Old American insisted they needed a copy of the death certificate. When a copy of the death certificate was provided, Old American withheld payment because the death certificate stated that the manner of death of the insured was pending investigation.