Claims Litigation

[cessnajbl]

What is the name of your state (only U.S. law)? NC

 

[cessnajbl]

NC Life Insurance Claims Litigation

I understand that within the 2 year contestable period, an insurer may rescind a life insurance claim for a misstatement leading to material misrepresentation. My questions follow:

1. Does NC have a State Statute requiring a "causal connection" between the alleged material misrepresentation and the cause of death in order for an insurer to rescind a claim?

2. If not, is there a Broad Evidence Rule in NC that leans toward "causal connection" verses "hazard assumed" when litigating life claims?

 

[Betty]

Per my reference no & no. (NC) Most states do not require a casual connection/relationship between material misrepresentation & cause of death.

However, having said that, it is noted that it is hard to say if the case went to court, what any "individual" court might decide after a review of all info. "Generally" the life ins. co. wins. (can rescind) -- except in the states that do require a casual relationship between material misrep. & cause of death & there isn't one.