Rathman v. Union Sec. Ins. Co.

**Insurance Company Wins Dispute Over Death Benefits** This case involved a disagreement about whether an employee's family should receive death benefits after a fatal snowmobile accident. The deceased employee had been drinking alcohol before the accident. Union Security Insurance Company refused to pay accidental death benefits to the family, claiming the company's insurance plan excluded coverage when someone dies in a motor vehicle accident while intoxicated. The family argued that a snowmobile shouldn't count as a "motor vehicle" under the insurance policy. The court sided with Union Security Insurance Company. The judge ruled that the insurance company's interpretation was reasonable – that snowmobiles do qualify as motor vehicles under the policy's intoxication exclusion clause. Because the employee was intoxicated while operating what the court considered a motor vehicle, the insurance company was legally allowed to deny the death benefits. **What this means for workers:** This ruling shows how broadly insurance companies can interpret policy terms like "motor vehicle" to deny claims. Workers should carefully read their employer-provided life insurance policies to understand what activities or circumstances might exclude them from coverage. If your policy has intoxication exclusions, be aware they may apply to recreational vehicles like snowmobiles, ATVs, or boats – not just cars and trucks.