CHARLESTON – A Nitro woman claims American Income Life Insurance Company failed to pay out on her late husband's life insurance policy.
Shawn R. Vance filed her complaint in Kanawha Circuit Court claiming that despite her late husband Joshua Vance having paid all premiums and provided accurate health information at the time of application, the company denied her claim after his death.
According to the complaint, Joshua Vance had purchased a life insurance policy from American Income Life Insurance through agent Brandon Hamilton in March 2021. He was 46 at the time of application, which involved questions about his health status and tobacco use, to which he responded truthfully.
It says Vance noted he had been treated for paralysis, epilepsy, mental disease or defect and other nervous system/brain disorders. He also noted he used smoked cigarettes and used tobacco in other forms.
Despite knowing about his health conditions and tobacco use, the insurer issued a policy with a death benefit of $50,000 without conducting any further inquiries. However, following Vance's death in May 2022 and Shawn Vance's subsequent claim submission, the company allegedly conducted retroactive underwriting by gathering Vance’s medical records for the purpose of denying the claim.
The insurance company reportedly denied the claim in January 2023 citing inaccuracies in responses to health-related questions on the application form.
She seeks compensatory damages, punitive damages, pre- and post-judgment interests, attorney fees, court costs and other relief.
Vance is being represented by Thomas Peyton of The Peyton Law Firm in Nitro. The case has been assigned to Circuit Judge Stephanie Abraham.
Kanawha Circuit Court case number 23-C-1068
