Comments on: Life Insurance, Suicide & the Two Year/One Year Rules http://www.douglasturner.com/2007/12/10/life-insurance-suicide-and-the-two-year-one-year-rules/ Leading Colorado Law Firm Mon, 08 Sep 2008 16:56:46 +0000 http://wordpress.org/?v=2.6 By: Ken Faig http://www.douglasturner.com/2007/12/10/life-insurance-suicide-and-the-two-year-one-year-rules/#comment-721 Ken Faig Thu, 14 Aug 2008 15:28:18 +0000 http://www.douglasturner.com/2007/12/10/life-insurance-suicide-and-the-two-year-one-year-rules/#comment-721 I presume Colorado requires that the policy state 1-year suicide exclusion if it is issued for delivery in Colorado. I presume that courts nationwide would generally uphold the Colorado policy provision in the event of suicide by an insured whose policy was issued for delivery in Colorado. It used to be the case that Missouri did not allow any suicide exclusion (unless it could be proved that the applicant intended suicide when applying for the policy). I think that may have changed in recent history (i.e., Missouri law changed to allow an exclusion period). However, the non-uniformity of the suicide exclusion limitation across the states (I believe 2 years is in the NAIC model law) does raise interesting legal questions. Suicide exclusion is clearly a delicate issue from the underwriter's point of view. Policy forms with no exclusion might be proposed for classes of preferred risks but the underwriter has to ask: why would a proposed insured (if a desirable risk) want/need immediate inclusion of death by suicide? I have also seen proposals for policy forms with perpetual suicide exclusions (not allowed by current law in any U.S. state). I think this is a also questionable proposal. Life claims after the contestability period has run should be kept simple with the objective of covering all claims except those disallowed by common law or slayer statutes. Assisted suicide raises its own issues. The Maryland Supreme Court rules in favor of recovery by the beneficiaries of an insured who had a friend kill her with a shotgun. They ruled it was not suicide. Hope these comments are of interest. I presume Colorado requires that the policy state 1-year suicide exclusion if it is issued for delivery in Colorado. I presume that courts nationwide would generally uphold the Colorado policy provision in the event of suicide by an insured whose policy was issued for delivery in Colorado. It used to be the case that Missouri did not allow any suicide exclusion (unless it could be proved that the applicant intended suicide when applying for the policy). I think that may have changed in recent history (i.e., Missouri law changed to allow an exclusion period). However, the non-uniformity of the suicide exclusion limitation across the states (I believe 2 years is in the NAIC model law) does raise interesting legal questions.

Suicide exclusion is clearly a delicate issue from the underwriter’s point of view. Policy forms with no exclusion might be proposed for classes of preferred risks but the underwriter has to ask: why would a proposed insured (if a desirable risk) want/need immediate inclusion of death by suicide? I have also seen proposals for policy forms with perpetual suicide exclusions (not allowed by current law in any U.S. state). I think this is a also questionable proposal. Life claims after the contestability period has run should be kept simple with the objective of covering all claims except those disallowed by common law or slayer statutes.

Assisted suicide raises its own issues. The Maryland Supreme Court rules in favor of recovery by the beneficiaries of an insured who had a friend kill her with a shotgun. They ruled it was not suicide.

Hope these comments are of interest.

]]> By: Life Insurance For Seniors-New Approaches http://www.douglasturner.com/2007/12/10/life-insurance-suicide-and-the-two-year-one-year-rules/#comment-716 Life Insurance For Seniors-New Approaches Fri, 25 Jul 2008 00:15:35 +0000 http://www.douglasturner.com/2007/12/10/life-insurance-suicide-and-the-two-year-one-year-rules/#comment-716 <strong>Sneaky Life Insurance Tactics...</strong> “Let he who is without sin, cast the first stone“.  Ok, I’m guilty. I have sinned. That said, I was reading an article about life insurance in Colorado and lo and behold I came across the following: Colorado Law and the Two-Year Ru... Sneaky Life Insurance Tactics…

“Let he who is without sin, cast the first stone“.  Ok, I’m guilty. I have sinned. That said, I was reading an article about life insurance in Colorado and lo and behold I came across the following:
Colorado Law and the Two-Year Ru…

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