Insurer says business owner forged name

By Melody Dareing | Jul 1, 2014

LOGAN -- An insurance company is suing an automotive group after the business owner allegedly signed a cancer patient’s name to life insurance paperwork.


LOGAN -- An insurance company is suing an automotive group after the business owner allegedly signed a cancer patient’s name to life insurance paperwork.

Central States Health and Life Company of Omaha filed a lawsuit June 2 in Logan Circuit Court against Ferrell Automotive Group Inc., citing breach of contract and violation of duties.

The lawsuit states Michael Ferrell was an agent for the insurance company under an agreement with Central States effective July 7, 2009. As an automotive broker, he sold a vehicle to cancer patient Harley Adams in Nov. 28, 2012, the complaint states. Adams then also purchased life insurance coverage with Central States and filled out the necessary paperwork, except for part B of the form claiming he was not a cancer patient or receiving cancer treatments, the lawsuit said.

After Adams died from lung cancer Feb. 13, 2013, his estate made a claim for the life insurance and it was discovered the Central States documents contained a Part B signature purported to be that of Mr. Adams, the complaint states.

Because Ferrell could not explain the discrepancy, Central States honored the claim and paid Adams’ estate $34, 254.68, the lawsuit states.

Central States is seeking damages that cover the benefits paid the Adams’ estate, pre-judgment interest, court costs and any other relief deemed proper. It is represented by John J. Polak of Atkinson & Polak PLLC of Charleston.

Logan Circuit Court Case No. 14-C-145-OB

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