NASSAU- Lying on an insurance application can come back to haunt you.
Justice Ian Winder ruled that Colina Insurance had the right to void Melody Munnings’ life insurance policy because she lied about her medical history.
Munnings did not disclose a 1985 diagnosis of sickle cell anaemia when she applied for the policy application in 2001. Munnings also didn’t name her attending physicians or mention a previous hospitalisation.
In fact, Munnings claimed that she was in good health and free from any disease. However, she did reveal that she had anaemia.
Based on this revelation, Munnings had to take a blood test to determine her red blood cell count. Colina approved the application after her blood levels came back in the normal range.
The beneficiaries of the policy, Drucilla Munnings and Golden Munnings, sued Colina when they refused to pay the value of the policy after Ms Munnings died in 2011. Instead, they received a cheque for a third of the premium payments
Colina Senior Manager Underwriting Todney Marsh testified that persons with sickle cell anaemia are classified as non-insurable.
In cross-examination, she admitted there was no specific question about sickle cell disease on the insurance application.
However, Marsh said the applicant was asked whether she had been diagnosed with any condition not mentioned on the form. Still, Munnings did not use this opportunity to disclose her medical diagnosis.
Justice Winder ruled, “I find that there was fraudulent non-disclosure of material information by the insured and as such the defendant is entitled to void the policy.”
