The advantages of a life expectancy using life insurance underwriting and life settlement methods include:
As an example, a plaintiff with rheumatoid arthritis filing a disability claim had been given a short life expectancy by the disability insurer. A properly done life expectancy using life insurance underwriting and life settlement methods found that this individual would live far longer than what the disability insurer said. The case settled with the plaintiff getting the proper number and amount of disability payments.
As an example, in a wrongful death case against a hospital the plaintiff died in the hospital. A life expectancy was performed for the defense on the deceased plaintiff (who was a 60-year-old male) as of the day before his final admission to that hospital. During the investigation for the life expectancy, it was discovered that 1) the plaintiff was not compliant with his diabetes medications to the point where his central nervous system was dysfunctional long before his final admission to that hospital, 2) he had suffered a stroke 4 years previously and had severe cardiovascular conditions, 3) he had chronic obstructive pulmonary disease and emphysema as a result of 45 years of cigarette smoking, and 4) he had a host of other medical conditions ranging from depression and anxiety to degenerative disc disease, gastrointestinal esophageal reflux, cataracts and prostatic hypertrophy. All of these medical conditions were included in the life expectancy report.
All of the above medical conditions were used to determine the plaintiff's life expectancy. During trial, these medical conditions were explained to the jury and how they affected the plaintiff's life expectancy. The jury heard all of the deceased plaintiff's medical conditions that affected his life expectancy prior to his final admission to that hospital, the jury then found a complete verdict for the defense. After the trial, jury members said, "It's a good thing that he died. His wife remarried a rich man."
In another defense case, the investigation conducted for the life expectancy uncovered evidence of prescription narcotic addiction, which was the deciding factor in winning the case at trial. Evidence of medical conditions, substance abuse and risky behavior that are relied on in a life expectancy using life insurance underwriting and life settlement methods comes from medical records, motor vehicle records, criminal records and any other documentation of health and risky behavior.
As an example, Rule 703 was used in one case where the individual's extensive history of risky driving and hazardous motorcycle riding had been excluded from the evidence considered. This personal history of risky behavior was essential to the calculation of an accurate life expectancy. As a result, the evidence relied on to calculate the life expectancy was re-admitted, resulting in a decision that awarded plaintiff a half-million dollars instead of the requested $9 million.
Vera Dolan is an Epidemiologist with over 30 years of experience in the life and health insurance industries. She is one of the leading mortality experts in the life insurance industry. She writes underwriting manuals and policy and procedure manuals for life and health insurance companies.
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