Case Summary:
Jerry and Brian Bates, the surviving children and insurance beneficiaries of the late Jerry Samuel Bate, file suit against the Jackson National Life Insurance Company after the firm refused to honor a $100,000.00 life insurance claim. Mr. Bates purchased the policy in November 1991 without disclosing an existing diabetic condition complicated by blood clotting in the leg. Exactly one year after he purchased the policy, Bates was killed by a gun shot wound. Jackson National Life denied the claim because Bates had knowingly misrepresented his true medical condition on the insurance agreement. The Bates allege violations of the state's insurance code and breach of contract. The insurance company responds with a motion for summary judgment.
Decision of lower jurisdiction:
This is the first judicial review of this case.
Outcome:
Jerry and Brian Bates win and lose. The U. S. District Court for the Southern District of Texas granted defendant's motion for summary judgment concerning the alleged violation of the state's insurance code. However, the court rejected defendant's second motion for summary judgment concerning the breach of contract complaint. The court ruled that the insurance company failed to prove that Mr. Bates' intended to deceive the company.