Life Insurance Claims Denial – Trial

Here is a life insurance case that went to trial in 2023.  The case is styled, Mirna Guzman v. Allstate Assurance Company.  The case was tried in the Northern District of Texas, Amarillo Division.

Allstate filed a declaratory judgment action against Guzman to have the life insurance policy she had applied for, rescinded due to misrepresentations in the policy application.

This was a lawsuit originally filed by Guzman and Allstate had countered with the declaratory judgment action.

This Blog will be short because the case has a legislative history that an attorney handling life insurance claims needs to read and dissect.  There was a two day trial with the Court being the trier of fact and there is a lengthy Finding of Fact and Conclusions of Law.

This case had originally been dismissed at summary judgment but an appeal was taken to the United States Fifth Circuit and that Court reversed summary judgment and this trial resulted.

Note to any attorney reading this.  At the time of the opinion and at the time of this post, there is an appeal considered by the Texas Supreme Court that would have substantial effects on this case and cases like this one going forward.  That case is American National Insurance Co. v. Arce.  The Arce opinion will have a substantial impact on life insurance cases regarding, what are commonly called “mis-rep” cases.  Cases involving an alleged misrepresentation in a life insurance application for life insurance.

Stay Tuned.

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