Insurance Companies Refusing to Pay Death Benefits

Heard on radio

[streetsmart]

I heard today that insurance companies were not going to pay life insurance benefits as a result of the events of September 11, 2001. They are claiming this was a act of WAR and benefits do not apply. We were not at war when these events took place. How could the insurance companies reject these claims. Anyone have knowledge of this. Please identify these companies. For me, I will cancel my policy immediately. And since I will be shopping for coverage, what companies are making payments.

[RickyJ]

They are claiming this was a act of WAR and benefits do not apply.

This was indeed an act of war, but if insurance compaines want to stay in business they had better find some way to pay these benefits anyway.

[Mitzi]

I work for an insurance company, and in our case, this is NOT true!!!

[SkiBum]

Not true. Insurance companies are going to honor their claims. (The lack of specificity in these rumors should make one suspicious.)

[Recovering_Democrat]

Sounds like an over-anxious local radio reporter trying to sensationalize. All network coverage I've heard has had insurers on saying they WILL pay benefits.

[streetsmart]

That's my point. If my life insurance company refuses to pay up. They are history.

[streetsmart]

Name the company, I may be shopping.

[parsifal]

Do not fear this! There are large numbers of lawyers out there who come to the aid of the beneficiaries and make sure the insurance companies live up to their responsibilities. Thank God for Lawyers!!!

[TonyInOhio]

Don't believe everything you hear.

This quote if from the Disater Insurance Information Office FAQ at the Insurance Information Institute web site:

For example, individual life insurance policies typically do not contain terrorism exclusions and, even if present, do not apply when the insured is in the United States. It is unlikely that many, if any, victims of this tragedy had a policy with an exclusion that covered the attacks.

I've yet to read of a single insurer refusing coverage, especially a life insurance death benefit, in the wake of the murders of September 11.

Regards,

Tony

Those who make war against the United States have chosen their own destruction.
President George W. bush, 9/15/01

[Alberta's Child]

Most life insurance companies are not obligated to pay out these claims, but I can't imagine that any of them will want to be the first one to say "No" to a claim. For a company to lose all its potential customers just because they wanted to save money in this case doesn't make a lot of sense.

For what it's worth, the last time this was a major issue was in the case of the plane crash that killed Commerce Secretary Ron Brown. Many of the passengers on that plane were high-level executives on a "trade mission" to Yugoslavia, and because they were traveling in an area that had been designated by the U.S. State Department as a war zone their life insurance policies were not paid.

[fone]

FWIW: Had a (pre-arranged) meeting with our corporate insurance agent this afternoon.
Of course WTC issue came up as general conversation. His sources in the industry are quick to point out that property losses have been worse in recent hurricanes and so forth; and the losses related to 9/11 are spread out by scores of different insurance agencies.

That said, the Insurance (gosh, I forget their title!) Commissioners(?) in many states have already had a video conference (several) and almost all agree that "no payment clauses" will be included in future insurance contracts in the event of an "act of terrorism."

Act of War clauses may not hold up in court as no official declaration of war has been made.

In any event, it will be the lawyers in the win-win situation.

[P-Marlowe]

I think you are spreading rumors. I would think you should get your facts stright before posting an "article." "Heard on Radio" is hardly a reliable source. I work in an insurance related field and I don't know of any company that has or will refuse to honor their policies.

BTW about 200 Insurance Adjusters, Underwriters and employees from one company were killed in the WTC.

[dbbeebs]

For me, I will cancel my policy immediately. And since I will be shopping for coverage, what companies are making payments.

I'd recommend lining up new coverage first, then cancelling old coverage.

[streetsmart]

That's why I made the post to "get the facts straight"

[Nephi]

This was not an act of war. This was a cowardly act of terrorism that will be responded to by our war department.

[mlo]

You heard it where and from whom? A DJ could come on and say this because it was something he heard at dinner last night. That wouldn't make it true.

[LJLucido]

Thank God for Lawyers!!!

LOL! Did hell just freeze over? Never thought I would ever hear that!