Insurance Company Sues Mother Whose Children Were Killed By Father
The father of two boys in a last-minute bid to harm his wife during a divorce killed their two young sons, burnt down their vacation home, just before killing himself. Beforehand, he had attempted to change the terms of the life insurance policy he had on himself, denying his wife any payment from the policy. The insurance company has since filed a lawsuit against the woman seeking the recovery of nearly $4 million in payments rendered.
The couple had two policies each of which paid out in the event of a suicide each worth $2 million apiece. So long as the suicide did not occur within two years of the runoff period, the policy would pay out. The father had sought to designate his sons as the beneficiaries and then list his brother as a secondary beneficiary. When he killed his sons, the money should have gone to his brother upon that request.
Taken in total, it appears as though the father named his children beneficiaries days before taking their lives and then his own. The policy would then be paid out to his brother as requested. However, the insurance company responded that they were unable to update the policy due to a failure to provide required information. It is unclear if the father received this letter before he shot himself.
The company paid out 2 $2 million policies to the wife but six months later, the brother, believing that he was the beneficiary, clouded the issue by demanding his money. The insurance company stopped payment on the checks, and now the matter is under consideration by the courts.
There are two issues here that are important. Firstly, the request to change the terms of the policy never went through. Therefore, the policy remains unchanged. Secondly, the father appears to have been trying to commit a conspiracy to defraud his estranged wife of millions and then commit a heinous crime to actuate the fraud. In other words, his attempt to move the beneficiary to his sons which he then killed to ensure the money goes to his brother is not something you’re allowed to do under the law. So the notion that the efforts of the deceased should result in the policy being paid to whom he wishes is likely not going to happen.
The insurance company is caught in the middle of this family dispute which will need to be adjudicated by a judge. They have indicated that the money is held in escrow, and no matter what happens, it won’t be going back to them.
Nonetheless, this is proving to be one of the most intriguing insurance battles in recent memory as the legal issues are a tangled knot. It seems unlikely, however, that the father will get away with killing his sons to ensure that his estate and insurance money doesn’t go to his wife.
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