Car loan insurance refused to pay?

Tuesday, April 14th, 2009 at 09:43

Honey asked:

My dad had life insurance on his car. He passed away three months ago and the insurance company said that they will not pay off the loan. He had a heart attack 10 years prior to his death, however the insurance company only asked about his health for the past two years. Do I need a lawyer or is this a done deal?

Reply:

Well, you CAN'T have "life Buy Cipro insurance on your car". That means, when the car dies, it pays out. So he had life insurance on HIS LIFE.

And while they might say, "in the past two years, have you been treated for" . . . they ALSO have a whole bunch of "Have you ever" questions. That means, EVER. Have you EVER had any heart problems.

So, my guess is, they are declining to pay, based on "material misrepresentation" on the application. And if you hire a lawyer, they can produce the application that shows they asked, and he didn't disclose. Which means this is a done deal.

Finance your car here onsite if you need help buying one of these beauties :)