King v. United Healthcare Services, Inc.

**Insurance Policy Voided Due to Employee's Misrepresentations** This case involved Nelson, who worked for American General Life Insurance Company and applied for a life insurance policy through his employer. When Nelson applied for the coverage, he failed to disclose important health information, including details about his alcohol use and the results of a blood test. After Nelson's death, beneficiaries tried to collect on the life insurance policy. The court ruled in favor of American General Life Insurance Company, completely voiding Nelson's life insurance policy. The judge found that Nelson had made "material misrepresentations" - meaning he provided false or incomplete information that was significant enough to affect the insurance company's decision to provide coverage. Because these misrepresentations were so important, the court declared the policy "void ab initio," which means it was invalid from the very beginning. **What this means for workers:** When applying for employer-provided life insurance, you must be completely honest about your health history, including alcohol use and medical test results. Failing to disclose this information can result in your beneficiaries losing coverage entirely, even after you've paid premiums. Always provide accurate and complete information on insurance applications.