Stephenville insurance lawyers know that Credit Life and Disability claims are denied way too often. The reason for denial is almost always the allegation that there was a misrepresentation in the policy application. This issue is discussed in a 1983, Houston Court of Appeals [1st Dist.] opinion. The opinion is styled, Cartusciello v. Allied Life Insurance Company of Texas.
The facts are undisputed. Cartusciello applied for and was issued a policy from Allied Life on March 7, 1978. She died on March 8 from coronary thrombosis with lymphatic leukemia listed as a secondary cause of death. A claim for benefits was made. The claim was denied due to health status misrepresentations in the application.
Allied Life filed a motion for summary judgment which was granted by the Court.