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Old 05-22-2020, 05:11 PM
 
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Are life insurance policies actually paying out for covid-19 deaths?


Should this be another reason for an accurate accounting meaning did the virus actually kill someone or did they just have it/test positive for it's presence?
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Old 05-22-2020, 05:26 PM
 
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Why wouldn't they? Unless a policy excludes pandemic, it would cover.
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Old 05-22-2020, 05:58 PM
 
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Originally Posted by athena53 View Post
Why wouldn't they? Unless a policy excludes pandemic, it would cover.
It's possible some policies, especially group or employer or other sort of 'bulk' or 'secondary' policies, might have clauses against epidemic/pandemic deaths as an "act of God" or force majeure or some other reason.

Haven't heard a word about anyone being refused, though. And it seems unlikely on any individual policy.

Life insurance companies fear getting a rep for nonpayment more than just about anything else. They pay on all kinds of marginal cases, and even suicide is covered after a waiting period (six months to two years). It's cheaper to pay some possibly contestable claims than to lose a huge chunk of policyholders who fear their policy will be worthless.

Have a policy? Is it in good standing? Are you dead? Here's your check.

About the only common reason for nonpayment — I believe — is if a holder dies in the commission of a felony.
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Old 05-22-2020, 05:59 PM
 
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Also make sure you were truthful about preexisting
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Old 05-22-2020, 06:08 PM
 
Location: State of Transition
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What if someone contracted it in fulfillment of their job duties, like a healthcare worker, vs. someone contracting it from "community spread", randomly? And if someone recovered, but was disabled by it, due to lung and kidney damage, say, or chronic fatigue, would Worker's Comp be relevant, if it were a work-related hazard?
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Old 05-22-2020, 06:09 PM
 
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Other than that insurance companies and pools are facing an exceptional degree of exposure, as with any disaster, I can't see any simple basis for any of them being able to refuse coverage and payout.

Nor have I seen any significant discussion to this end. Perhaps if we've blunted new cases and deaths enough, it will never be an issue, but a lot of insurance players are going to have very small dividends this year.
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Old 05-22-2020, 06:12 PM
 
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Originally Posted by Ruth4Truth View Post
What if someone contracted it in fulfillment of their job duties, like a healthcare worker, vs. someone contracting it from "community spread", randomly? And if someone recovered, but was disabled by it, due to lung and kidney damage, say, or chronic fatigue, would Worker's Comp be relevant, if it were a work-related hazard?
Well, this is turning into an interesting area. Many states (CA is one) have passed laws that say that if you were an "essential worker" and contracted COVID-19, there is a rebuttable presumption that it arose from employment and thus is covered by WC. So, the burden of proof hat you caught it outside of work is on the employer. Even though one analyst thinks this will cost WC insurers about $10 billion I think this is a good development. WC applies even to employees who aren't covered by a company health insurance policy and, unlike most health insurance policies, has no deductible and no other out-of-pocket to the worker. Subsequent disability would be covered as well.
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Old 05-22-2020, 06:23 PM
 
Location: State of Transition
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Originally Posted by athena53 View Post
Well, this is turning into an interesting area. Many states (CA is one) have passed laws that say that if you were an "essential worker" and contracted COVID-19, there is a rebuttable presumption that it arose from employment and thus is covered by WC. So, the burden of proof hat you caught it outside of work is on the employer. Even though one analyst thinks this will cost WC insurers about $10 billion I think this is a good development. WC applies even to employees who aren't covered by a company health insurance policy and, unlike most health insurance policies, has no deductible and no other out-of-pocket to the worker. Subsequent disability would be covered as well.
Thank you. Fascinating!

So, one wouldn't have to be a health-care worker; one could be a grocery cashier, deli clerk, or produce department stocker. Anyone serving the public.
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Old 05-22-2020, 11:42 PM
Status: "For the night is dark and full of terrors" (set 13 days ago)
 
Location: DMV Area/NYC/Honolulu
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Quote:
Originally Posted by Therblig View Post
It's possible some policies, especially group or employer or other sort of 'bulk' or 'secondary' policies, might have clauses against epidemic/pandemic deaths as an "act of God" or force majeure or some other reason.

Haven't heard a word about anyone being refused, though. And it seems unlikely on any individual policy.

Life insurance companies fear getting a rep for nonpayment more than just about anything else. They pay on all kinds of marginal cases, and even suicide is covered after a waiting period (six months to two years). It's cheaper to pay some possibly contestable claims than to lose a huge chunk of policyholders who fear their policy will be worthless.

Have a policy? Is it in good standing? Are you dead? Here's your check.

About the only common reason for nonpayment — I believe — is if a holder dies in the commission of a felony.
I'll just say that courts generally require what constitutes an "act of God" or "force majeure" to be explicitly spelled out. Otherwise, insurers have too much leeway.
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Old 05-22-2020, 11:58 PM
 
Location: Oregon, formerly Texas
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Based on my google news search, it doesn't seem to be impacting the life insurance industry much. Some companies have stopped issuing policies to people over 70 and are more picky about pre-existing conditions.


But from the news I'm reading, if anything they are getting more friendly to everyone else because there is a surge in demand for term life right now. So they are doing well. The deaths so far are happening to mostly older people so while I'm sure they are paying out more in claims than usual, it's not THAT much more and not entirely unexpected given the populations most affected.
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