Policyholder Stages His Own Death

[arnguy]

An interesting article appears in the latest issue of Insurance & Financial Advisor. A motivational speaker from Long Island, N.Y., took out a $4 million life insurance policy a month before his allegedly staged death. Principal Life Insurance Company filed a suit in federal court in brooklyn, N.Y. stating they should not be required to pay the death benefit to his family because the policyholder lied about his income.

This guy allegedly paid an ex-con to kill him and stage it like it was a robbery. The ex-con apparently performed his end of the bargain by stabbing and choking the policyholder to death. The killer is awaiting trial on second-degree murder charges. Principal Life did not bring up the issue of the unusual nature of the policyholder's death.

The link to this bizarre story is www.ifaebnews.com .

 

[djs]

Sounds like he failed as a motivational speaker! Or, was his pitch:
'How to make $4,000,000 in 30 days'

 

[STIBROKER]

Maybe he should have reread his suicide clause,,,,,,,

 

[Cornelius]

arnguy can you fix the link? Thanks..

I found it: http://ifawebnews.com/2010/08/02/life-insurer-sues-to-block-4-million-payout-in-n-y-speakers-death/

 

[GreenSky]

See what happens when a motivational speaker lives in a trailer down by the river?

Was it Tom?

Rick

 

[BNTRS]

which also said he is accused of lying about canceling another $4 million policy.

This minor piece is very interesting and something I've never thought about, but have a client who could be in some degree of trouble if he died.

Replaced a policy a year ago but he never cancelled the old policy and still pays premiums on it--mostly due to procrastination on his behalf to call and stop the auto draft.

The db he has combined now goes beyond the issue limits of both companies (old and new) not combined but individually. Makes me wonder if the new company would contest the db if he died suddenly--or at least the portion beyond their maximum issue limit--never thought about it like that until just now.

 

[WinoBlues]

If he procrastinates another 12 months he is good.

That is an interesting question though. Is the replacement binding with the new company? Is that material?

This minor piece is very interesting and something I've never thought about, but have a client who could be in some degree of trouble if he died.

Replaced a policy a year ago but he never cancelled the old policy and still pays premiums on it--mostly due to procrastination on his behalf to call and stop the auto draft.

The db he has combined now goes beyond the issue limits of both companies (old and new) not combined but individually. Makes me wonder if the new company would contest the db if he died suddenly--or at least the portion beyond their maximum issue limit--never thought about it like that until just now.

 

[Larry Tew]

If he procrastinates another 12 months he is good.

That is an interesting question though. Is the replacement binding with the new company? Is that material?

Yes, this is a good question. I just had a case issued where replacement was involved, and I recall the application asked when the replaced policy would be cancelled. I said "at issue" and the applicant signed as such. Is this material? Great question.

 

[jodieB]

i dont blame them not paying
there was a case in Britain with a man John darwin faked his death and his wife took out life insruance.

after a number of years returned to a police station "with amnesia". he was caught out because he had a picture of him and his wife at a holiday home in cuba

 

[arnguy]

i dont blame them not paying
there was a case in Britain with a man John darwin faked his death and his wife took out life insruance.

after a number of years returned to a police station "with amnesia". he was caught out because he had a picture of him and his wife at a holiday home in cuba

I remember reading about that, Jodie. The situation in this case is that this dude is not going to return---he's toast. Notice that the insurer didn't even bring up the issue of the unusual circumstances of his death. I suppose it could be classified as "assisted suicide", but the DA is charging the "perp" with 2nd degree homicide.