The American Justice Partnership, the Chamber of Commerce, and the Insurance Lobby (as always, forgive the redundancy), would have the public believe that all that is wrong with America can be traced to trial lawyers (by which they really mean any injured claimant, but it is easier to demonize lawyers).
The Chamber of Commerce portrays itself as the standard bearer for truth, justice and the American way. Heck, its logo is a stylized eagle and American Flag. And certainly any company endorsed by the Chamber must share the Chamber's devotion to American values and patriotism. For instance, see: US Chamber of Commerce Endorses AIG Products. In fact, the February, 2002 article "The Chamber named AIG as the exclusive endorsed provider of business insurance products and services, including property, casualty, specialty and employee benefits insurance."
So, it was with a sense of disbelief that I read a recent article about how AIG denied an Iraq veteran's
life insurance claim.
It seems that Stan and Shirley White, having lost one son to a rocket propelled grenade attack in Afghanistan, decided to take out a life insurance policy on their son Andrew, who had been a combat engineer, disarming "improvised explosive devices" and patrolling areas near Iraq's border with Syria. He returned home in 2005. The policy was taken out in 2006, and Andrew passed the insurance company physical. He was charged a higher premium because he was a smoker and the premiums were dutifully paid until the time of his death. He died in his sleep in February, 2008. A claim under the policy followed.
Though Andrew had passed a physical that allowed him to fight for his country (during which time he acquired post-traumatic stress disorder), and passed an insurance company physical, and paid higher premiums because he was a smoker (not a contributing factor in his death), the claim was denied. Why, you may ask. Because, you see, when Andrew was 16, he was in an auto accident, and apparently did not mention this on his life insurance application. The company stated that if it had known about the accident it would have never issued the policy. The end.
Unfortunately, Andrew's age is not listed in the Charleston Gazette story, and most other internet references merely reprint that story. But it does appear that the auto accident was a long time before the policy was issued.
What the story doesn't pick up on is this. Andrew's death occurred less than two years after the policy was issued. That comes within what is called the Contestability period of the policy. This means a policy can be voided during the first two years, "based on misrepresentations contained in the application or medical examination." This quote is from the AIG Life Insurance Glossary.
I am convinced that the auto accident injuries had nothing to do with his death. There is obviously no evidence that points to it. What is clear is that AIG had not made enough money on the policy at the time of Andrew's death. They looked for a reason not to pay, and they think they have found one.
So, the White family, good Americans, who lost one son in service to his country, and had another acquire post traumatic stress disorder in service to his country, must bear the financial burden of losing Andrew, as they did with Bob (who hadn't taken out a policy to be later denied), because AIG had not yet made enough money on them.
When the Chamber of Commerce endorses AIG, it should tell its members that the national colors of the US are not red, white and blue, as shown on the Chamber's logo. They are, apparently, the color of money.
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