Could Life Insurance Companies not pay out due to "act of god" clause

[Blansky]

I was wondering if life insurance companies could opt out of paying life insurance claims during this pandemic due to the act of god clause or other clauses?

Just wondering?

[Bigblu10]

Originally Posted by Blansky

I was wondering if life insurance companies could opt out of paying life insurance claims during this pandemic due to the act of god clause or other clauses?

Just wondering?

Why not contact yours? Phone and email are still in operation.

[037]

Even if Force Majeure were upheld in court, your insurance company would have to pay out whatever amount you've contributed towards your policy. As in, they might not pay out a $500,000 policy value but would at a minimum have to repay you the $50,000 (for example) that you've contributed thus far. Breaking a contract typically requires reimbursement.

I'm neither a lawyer nor an insurance agent so consider the above worthless in terms of legal or insurance advice.

As Jaime mentioned, a phone call or email would be a good idea. Better yet, call on the phone and request an email response so you have something in writing.

My guess is no, they can't back out due to CV19.

[JasoninDenver]

Going to be a heck of a stretch, so NO. Illness and disease is to be anticipated by the carrier, no matter the scope. Hence, higher premiums for people with heart disease, etc....

Insurance policies have specifically enumerated exclusions which are strictly construed against the insurer. In life insurance, this usually applies to risky pursuits such as sky diving or death due to war.

The best example is homeowners policies in tornado prone areas. While the tornado may be an act of god as everyone commonly views it, they are not a basis for the insurer to deny coverage. They are grounds for insurers to charge much higher rates in certain tornado prone zones.Pretty much every policy will also have a flood or earth movement exclusion which requires a separate policy and additional premium.

Former personal injury lawyer.

[haven_seeker]

Originally Posted by Bigblu10

Why not contact yours? Phone and email are still in operation.

....."We are currently experiencing a higher-than-normal call volume. Your approximate wait time is eighty-six hours and fifteen minutes. Your time is very important to us and we appreciate your business!"

[Thug]

I work in corporate at a F500 life insurance company and senior management has already said to expect a hit to earnings vs prior year due to more ppl dying.

[Blansky]

Originally Posted by haven_seeker

....."We are currently experiencing a higher-than-normal call volume. Your approximate wait time is eighty-six hours and fifteen minutes. Your time is very important to us and we appreciate your business!"

Good one.

"If you're interested in BUYING life insurance, someone will be with you in 2 minutes.

[Blansky]

Originally Posted by Bigblu10

Why not contact yours? Phone and email are still in operation.

Mine expired, probably because I was expecting to expire years ago.

Checking for a friend.

[TheBeast]

If there is a way for insurance companies to screw over people, trust me their high dollar sleeze ball attorneys will find it!!!

[Andad]

Originally Posted by Blansky

I was wondering if life insurance companies could opt out of paying life insurance claims during this pandemic due to the act of god clause or other clauses?

Just wondering?

I would expect they are adding the disclaimers as I type this.

[Travelair007]

After SARS and MERS, several policies carved out these situations. I have lawyers looking at mine and from what’s written, it doesn’t look good.

On the other hand, insurance claims have been filled and according to a reading in DE, it appears there will be arguments made around civil authority. I don’t think insurance companies will get away with not paying without a fight from the states.

[Brew]

I wonder if insurance companies can/will deny coverage for those who unnecessarily take risks and refuse to stay home.

[Chester01]

Originally Posted by Blansky

I was wondering if life insurance companies could opt out of paying life insurance claims during this pandemic due to the act of god clause or other clauses?

Just wondering?

Hard to say, but they can try. Any illness (flu, and complications) could be considered acts of god. I know I am on the hook to my two sons childcare programs for the time of like 2k/month due to “acts of god” though they are not open.

[pickettt]

I can damn near promise you they'll try.

[Star Ferry]

Only 2/3 a lawyer here, but a plain reading of the contract would be malpractice. They can go ahead and add an epidemic/pandemic exclusion, but it's a consumer facing contract that few people read. The expectation when you buy life insurance is that getting a viral infection and dying is covered.

So my intuition is that these exclusions, even if present in the contract, are not legally enforceable. If anyone has an example of a U.S. court upholding such a provision, please share.

[77T]

IMHO, without a specific pandemic clause being named as an Act of God, life insurance is payable due to Covid-19 death.

As long as the insured was honest in the application process about health, travel and pre-existing conditions.




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[daveathall]

Got this text this morning, not life insurance, but it seems they are covering themselves.

[Deepsea Florida]

Travel insurance sucks.
It’s a suckers buy.

[srvrf]

Originally Posted by daveathall

Got this text this morning, not life insurance, but it seems they are covering themselves.

That seems reasonable. Anyone who booked a flight with travel insurance before March 18th is covered. After that, you had to know you were taking a risk.