Banner Life rescinded my late husband's $750,000 term life insurance policy during the two-year contestability period in Texas asserting material misrepresentation of tobacco use and failure to disclose obstructive sleep apnea on the application after he died of an unrelated pulmonary embolism 19 months into the policy. Forced full $750,000 death benefit payment plus statutory interest using the Texas five-element misrepresentation defense framework, the agent-completed application imputed knowledge doctrine, and the Texas prompt payment of claims statute. The five-element approach to contestability period rescission of life insurance death benefit claims
Posting this because contestability period rescissions of life insurance death benefit claims based on alleged material misrepresentation in the application are one of the most common beneficiary...