After Claimant Paid Premiums For 15 Years, Northwestern Mutual Rescinds Disability Policy
When you apply for a disability policy, it is very important to answer all questions as truthfully as you can. The courts generally will not render a summary judgment in favor of the disability insurance company if the company can’t prove that you answered a question with the intent to defraud. If you don’t have a solid explanation for why you answered a question falsely, you may find yourself losing your coverage or facing a jury trial to determine whether you should receive your long-term disability benefits or not.
This is what happened to Richard Koch. Northwestern Mutual Life Insurance Company filed a motion in the U.S. District Court for the Western District of Washington for a summary judgment against Mr. Koch and rescission of his disability policies.. At issue? Three disability insurance policies that Koch had purchased from Northwestern Mutual.
