Life insurance claims denial attorneys will rarely see this situation, but it is worth knowing about. This is a 1987, Texas Supreme Court opinion styled, Davidson v. Great National Life Insurance Company.
Davidson is the beneficiary of life insurance policy insuring Dauod Alquassab. Davidson filed suit after Great National denied the claim for benefits. The trial trial found in favor of Davidson. An appeal resulted in the verdict being reversed. This Texas Supreme Court reversed the appeals court and remanded the case for further consideration.
In May 1980, a man identifying himself as Dauod Alquassab applied for an insurance policy on his life from Great National. Although unknown to Great National at the time of the application, Alquassab had previously used the names of David Kassab and David Kay; he was convicted of felony fraud charges under each previous name. Alquassab named Ilan Eiger, his partner in a real estate business, as the beneficiary when Great National issued the policy in June 1980. In September 1980, Alquassab changed the beneficiary designation from Eiger to Phyllis Davidson, his former wife from whom he was divorced in 1968. Alquassab then traveled to Tel Aviv, Israel, in February 1981. Prior to his departure, the record indicates that Alquassab allegedly defrauded First City Bank in Houston, of approximately $1.5 million dollars, and committed additional acts of fraud upon other banking institutions.