Suit Over Earnhardt Insurance Benefits in Full Swing

Richard Childress Racing has filed suit in North Carolina state court against United of Omaha Life Insurance Company over Omaha's refusal to pay life insurance proceeds following Earnhardt's death after a crash near the conclusion of the 2001 Daytona 500. In 2000, Earnhardt signed a contract with Richard Childress Racing who agreed to insure Earnhardt for $7.2 million to be payable to Teresa Earnhardt if he died during the first year of the contract. A $3.5 million life insurance policy was already in effect with National Life of Vermont, and RCR purchased an additional $3.7 million policy through agents of United of Omaha -- a subsidiary of Mutual of Omaha -- prior to Earnhardt's death. The insurance policy application with United of Omaha was completed and signed in January 2001 by all parties involved: RCR, Dale Earnhardt and United of Omaha. Two premium payments were made by RCR to agents of United of Omaha. However, Earnhardt failed to take the physical needed for the policy to take effect. RCR said in its suit that the insurance company's doctors called to schedule the physical in early February -- when Earnhardt was already in Daytona Beach, Fla., preparing for the NASCAR season. Earnhardt's assistant was told the physical could wait until after the Daytona 500, Childress' suit stated. That never happened. Earnhardt died by crashing into the wall on the last lap of the Daytona 500. Within 24 hours of Earnhardt's death, United of Omaha declined payment on the $3.7 million policy and stated it had closed the case file. Shortly after that, National Life of Vermont sent a check for $3.5 million to RCR, which was delivered to Teresa Earnhardt. The lawsuit against United of Omaha is for violation of North Carolina laws dealing with bad faith and unfair and deceptive trade practices by insurance companies. Under those laws, insurance companies must conduct a reasonable investigation of all claims based upon all available information. RCR contends that United of Omaha did not conduct such an investigation and illegally refused to pay under the policy, thus violating the law and regulations applicable to insurance companies in North Carolina.

Comments

[federal criminal defense attorney]

It makes sense to have an open and honest discussion with anyone you are considering hiring.

[supra footwear]

I'm looking for a great quotes that i can use on my everyday task and duties. Lucky enough to drop by on your blog. Thanks.

[Moncler Jacket Sweden]

I recently came across your blog and have been reading along. I thought I would leave my first comment. I don't know what to say except that I have enjoyed reading. Nice blog. I will keep visiting this blog very often.