According to a story in the Charleston Gazette, AIG is being sued for refusing to pay a life insurance policy on an Iraq war veteran. The veteran, Andrew White, served with the Marines in Iraq, as a combat engineer, disarming bombs and patrolling the Syrian/Iraqi border. Upon returning from the war, White took out a life insurance policy with AIG in 2005. White’s brother, who served in Afganastan, was killed in action before White took out the policy, and his brother’s death was the impetus for White deciding to purchase life insurance.
In 2007, White was diagnosed with post traumatic stress disorder. White subsequently died in his sleep. The autopsy found normal levels of prescription medication in his body. The coroner ruled White’s death accidental. When presented with the claim, AIG denied the claim based on the fact that White failed to report he was involved in a car accident when he was 16 years old when he filed his application.
Jack Tinney, the attorney for the family was quoted as saying, “(t)hey have gone back and searched for any reason whatsoever to deny the claim, rather than look for a valid reason”. Sounds like the plaintiffs in this case have a good bad faith case against AIG.