Question

Amir Labib gets a reduced rate from his auto insurance company because he represents in his application that he commutes less than ten miles a day to work. Three years later, he and his wife buy a new residence, farther away from work, and he begins a fifteen-mile-a-day commute. The rate would be raised if he were to mention this to his insurance company. The insurance company sees that he has a different address, because they are mailing invoices to his new home. But the rate remains the same. Amir has a serious accident on a vacation to Yellowstone National Park, and his automobile is totaled. His insurance policy is a no-fault policy as it relates to coverage for vehicle damage. Is the insurance company within its rights to deny any payment on his claim? How so, or why not?

In 2009, Peter Calhoun gets a life insurance policy from Northwest Mutual Life Insurance Company, and the death benefit is listed as $250,000. The premiums are paid up when he dies in 2011 after a getaway car being chased by the police slams into his car at fifty miles per hour on a street in suburban Chicago. The life insurance company gets information that he smoked two packs of cigarettes a day, whereas in his application in 2009, he said he smoked only one pack a day. In fact, he had smoked about a pack and a half every day since 1992. Is the insurance company within its rights to deny any payment on his claim? How so, or why not?

Answer 1

In Amir Labab Case:

In case of Insurance company the insured person give all his details to company. in case of any change in details of address,contact number they update the insurance company. also if insurance company knows about changed address they can confirm the same with insured person. the company can not deny the claim on the basis that the inured person changes his residence.

in the present case the insurance company send invoices to new address it means they aware about change in address that means inured person informed them othewise company will not able to send invoices to new place.here person fails to mention them that he travels 15miles day here fault of insured person. the person met an accident where his car damaged more than 75% here insurance company can not deny the claim on the basis of change in address as they have to provide the claim at low rate as mentioned befor change in address. they can not deny the claim fully by saying no damage to vehicle.Amir labib can file suit against insurance company to get his claim.

In case of Peter Calhoun:

In case of Life insurance the inured person have to disclose everything true and fair whether about his age,disease and wrong habbit that will affect his body.if insurance company found any violation of condition or false information they will deny the claim.

in the present case peter hide the fact of smoking 2 packs of cigarette he just tells about that he have one pack in a day in application. here insurance company is correct to deny his claim as he hide the facts from them that results into violation of terms so insurance company is in right to deny.