Widow Seeking Benefits Can't Sue State Farm

[The Straight Story]

Widow Seeking Benefits Can't Sue State Farm


PITTSBURGH (CN) - A federal judge declined to revive a widow's lawsuit that claims State Farm paid $100 to buy her late husband's $10,000 insurance policy just days before he died of suspicious circumstances.

Lorraine Johnson sued State Farm in federal court when she realized insurance agent Robert Confer had purchased her late husband Terry Johnson's life insurance policy right before his sudden death from peritonitis while in jail for violating the terms of her restraining order.

Both Confer and State Farm knew Terry was actively abusing illegal drugs, had just been released from a psychiatric ward and "had engaged in extremely erratic behaviors days prior to the transaction," according to the complaint.

State Farm allegedly told Lorraine that Confer had bought Terry's policy for $100, that the company stood by its agent's purchase and that "there is a difference between what is moral and what is legal."

http://www.courthousenews.com/2011/11/08/41291.htm

[RockaFowler]

1. How is that legal??

How can someone else purchase a policy like this??

[Crazy Dave]

2. That's a new one on me too

:shrug:

[KurtNYC]

6. Wal Mart did it too.

http://consumerist.com/2007/07/walmart-took-secret-life-insurance-policies-out-on-employees-collected-after-their-death.html

[adamuu]

3. what an odd case

[BanzaiBonnie]

4. The statement from State Farm is what stands out

that the company stood by its agent's purchase and that "there is a difference between what is moral and what is legal."


That's exactly what's wrong with the corporate stand. There will be consequences.

[EC]

5. This used to be done during the depression

people selling their policies because that was all they had left. I thought there would have been a law by now. It seems to me that agents could bilk a lot of customers this way...in fact I thought it was illegal for agents to buy back policies at cents on the $$.