Iraqi war veteran Andrew White returned from Iraq after spending two years protecting American Soldiers by removing IED’s. His brother was not so fortunate-He was killed in combat.
So Andrew decided to take out a life insurance policy naming his parents as the beneficiaries when he saw the financial hardship related to his brother’s death. AIG was happy to issue him a life insurance policy and accept his premiums (which it increased because he was a smoker).
However, when Andrew died in his sleep 14 months after obtaining the insurance AIG refused to pay the death benefit to his parents when it discovered that Andrew had been in a car accident when he was 16 years old. Even though the car accident had nothing to do with his death, AIG has refused to pay these benefits. Mr. White’s representative scoffed at AIG’s excuse that it would not have issued the policy if it had known about the accident years before.
If it were not so sad, it would be funny. AIG will insure this honorably discharged Iraqi war veteran who smokes (which everyone knows causes cancer-which kills people) as long as it can increase the amount it charges for premiums, but it is going to argue with a straight face that it would not have insured him if it had known of some fender-bender years before. Good luck with that one. Just another example of the Profits before People attitude common with many insurers today.