Colonial Life Insurance Sends $54 Check, Sues Widow

by Arkansas Business Staff  on Monday, Oct. 7, 2013 12:00 am  

An Izard County woman who expected $100,000 in life insurance benefits after her husband died in 2011 ended up with a check for $54.10.

And now Colonial Life & Accident of Columbia, S.C., is suing Robert Smith’s widow, Shelia Smith and his estate in an attempt to get a judge to say the policy is void, according to the lawsuit filed in U.S. District Court.

Colonial said Robert Smith misrepresented his health history when he filled out the application for life insurance on Sept. 18, 2011 — less than two months before he died.

He said on the form that he hadn’t had high blood pressure in the last 10 years, but he had, the lawsuit said. And his cause of death was listed as “cardiac arrhythmia,” Colonial said.

Colonial said that Shelia Smith hadn’t cashed her small check, which is the refund for the premium. Colonial said the policy should be declared void for misrepresentation.

Shelia Smith couldn’t be reached for comment.

 

 

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