Life Insurance And The Application

Life insurance lawyers might know this law but most other people do not.  The law is found in the Texas Insurance Code, Sections 705.101 thru 705.105.

These Insurance Code sections require that an application for insurance be attached to the policy when the policy is sent to the applicant.

This issue was before the Texas Supreme Court in a 1994 opinion styled, Fredonia State Bank v. General American Life Insurance.

The insured Claytor Blake III, died as the result of a gun-shot wound to his head.  At the time of his death, he owned two life insurance policies issued by General.  When a claim for the life insurance benefits was made by the beneficiaries, General denied the claims based on their assertion that there  misrepresentations in the life insurance applications.  The case was tried to a jury who found in favor of the beneficiary by making findings that that Blake did not misrepresent his medical history in order to obtain insurance, plus the jury found that the application was not attached to the insurance policy.

The case was appealed and this Court found in favor of the beneficiaries.

The plain language of the relevant statute reads in relevant part:  … a life insurance policy must be accompanied by a copy of:

(1)  the policy application; and

(2)  any questions and answers given in connection with the application.

This Court found in favor of the beneficiaries by stating pursuant to the Texas Insurance Code, any alleged misrepresentations by the insured cannot by used as a defense by General because the jury found that the policy was not delivered with the application attached to the policy.

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