Commencement Of Life Insurance Coverage And Termination Of Coverage

Pinning down the exact date coverage begins can sometimes be a tricky proposition.  If an insured dies before a policy becomes effective, there is no coverage.  This was discussed in the 1950, Texas Supreme Court opinion, Republic National Life Insurance Company v. Hall. and the 1980, Eastland Court of Appeals opinion, Durham Life Insurance Company v. Cole, and both are worth reading to understand the issues the courts look to, for their decisions. A policy may also contain a “good health” clause that requires that the insured be in good health at the time the policy is issued or the coverage will not take effect.  This is discussed in the 1979, Texas Supreme Court opinion styled, Washington v. Reliable Life Insurance Co. and the 1977, Amarillo Court of Appeals opinion styled, United Savings Life Insurance Company v. Coulson.  A good health clause renders the policy void if the insured was  not in good health.  In contrast, a false…

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