Aces High Bulletin Board

General Forums => The O' Club => Topic started by: StarOfAfrica2 on May 25, 2005, 03:56:40 PM

Title: Insurance wont pay for Earnhardt death
Post by: StarOfAfrica2 on May 25, 2005, 03:56:40 PM
http://msn.foxsports.com/nascar/story/3640468

Quote
The insurer, United of Omaha, argued the $3.7 million policy was never in effect because Earnhardt had not taken the required physical before he died in a crash at the Daytona 500 in 2001.
"We made a fair decision. We made a reasonable decision. There's no question we made an unpopular decision, but we did what we're supposed to do based on what occurred," company lawyer Stephen Coles told the jury.

Richard Childress Racing took out the policy on Earnhardt's behalf and made the first $5,000 premium payment. It received a second bill just two days before Earnhardt died in the last-lap crash Feb. 18, 2001.

John Morrow, lawyer for Earnhardt's widow, Teresa, accused the insurer of failing to properly investigate the claim.

But Coles countered that despite the payment, the policy hadn't attached to the 49-year-old Earnhardt, one of the most popular drivers in the history of stock-car racing, because he had put off requests to undergo a physical.

"Just because somebody files an application doesn't mean they get a policy," Coles said. "It's not automatic. It's especially not automatic when it's the amount of money in this case."
Title: Insurance wont pay for Earnhardt death
Post by: SunTracker on May 25, 2005, 04:11:48 PM
Insurance companies are corrupt.
Title: Insurance wont pay for Earnhardt death
Post by: Raider179 on May 25, 2005, 04:16:55 PM
Joe Guy wouldnt get his check either. Nothing spectacular cept he was famous.
Title: Insurance wont pay for Earnhardt death
Post by: rpm on May 25, 2005, 04:17:09 PM
Insurance companies are legal mobsters. As much as I hate them, if he did'nt take the physical they probably have every legal right not to payoff.
Title: Insurance wont pay for Earnhardt death
Post by: fd ski on May 25, 2005, 04:21:25 PM
I'd imagine that cashing the 5000$ consitutes establishment of the coverage.... if he wasn't covered, they shouldn't have cashed it...
Title: Insurance wont pay for Earnhardt death
Post by: Hangtime on May 25, 2005, 04:26:22 PM
Since the policy was not 'accepted' they will return the premiums.

In about 10-12 years. (only took 'em 3 years to decide not to accept the policy)

Rat-salamander Bastids.
Title: Insurance wont pay for Earnhardt death
Post by: Raider179 on May 25, 2005, 04:27:14 PM
Quote
Originally posted by fd ski
I'd imagine that cashing the 5000$ consitutes establishment of the coverage.... if he wasn't covered, they shouldn't have cashed it...


Thats the kinda thing they call "getting the ball Rolling on your coverage" your still not covered. What if he would have had some terminal disease? Would he still have got paid out? no, because he didnt take the physical.
Title: Insurance wont pay for Earnhardt death
Post by: StarOfAfrica2 on May 25, 2005, 04:50:58 PM
My feeling is, if they didnt want to acknowledge coverage, they shouldnt have sent a bill for the second payment, and they should have said "no physical, no coverage."  Unless they had a good reason to believe he would  NOT pass the physical, in which case they never should have taken the first payment without te physical being done.
Title: Insurance wont pay for Earnhardt death
Post by: ASTAC on May 25, 2005, 05:12:15 PM
Not like the Earnhardts need the money..DEI is pretty big and has a great merchandising campain.
Title: Insurance wont pay for Earnhardt death
Post by: Captain Virgil Hilts on May 25, 2005, 05:41:06 PM
Quote
Originally posted by ASTAC
Not like the Earnhardts need the money..DEI is pretty big and has a great merchandising campain.


That's not the point.

The insurance company accepted payment to provide coverage. They also accepted the fact that the physical was delayed. If the physical was THAT big a deal, they should have declined payment AND coverage IN WRITING until the physical. They did neither, and now they want to back out on the deal. Hell, the autopsy could pass for the physical since they accepted payment. So long as he did not die because of a pre existing condition, and had no evidence of a terminal illness, they accepted the money, they should pay the claim.

This is a lot like selling a lottery ticket and accepting a check as payment, and then when the ticket is a winner saying it is void because you decided not to cash the check.

It's typical total Bravo Sierra from insurance companies. They are generally scum. In all my dealings with insurance companies, I have yet to see one that did not try to avoid paying at least 10% or more of legitimate claims.
Title: Insurance wont pay for Earnhardt death
Post by: rpm on May 25, 2005, 06:28:38 PM
Wow Virgil, I did'nt realise you had access to his policy. Why don't you read us the fine print in paragraph 7 on page 3?

There are terms and conditions that the policyholder has to meet in order for the policy to take effect, payment or not.
Title: Insurance wont pay for Earnhardt death
Post by: Captain Virgil Hilts on May 25, 2005, 09:26:52 PM
Quote
Originally posted by rpm
Wow Virgil, I did'nt realise you had access to his policy. Why don't you read us the fine print in paragraph 7 on page 3?

There are terms and conditions that the policyholder has to meet in order for the policy to take effect, payment or not.



Actually, I saw part of the policy, and part of the legal positions as well. They were on a racing site, but they were taken down pretty quickly. Making a living in the racing industry gets you the inside scoop on plenty, provided you know who to talk to, and what to ask. You'd be amazed what gets around among friends.
Title: Insurance wont pay for Earnhardt death
Post by: Shamus on May 25, 2005, 10:53:18 PM
It's called "post claim underwriting".

A lot if not most life insurance companies have investigators in the field whos sole goal is to find a misrepresentation..someone saw you smoking or you went scuba diving on your last vacation, lets them refund the premium and not pay the claim..its become a dirty business.

shamus