David RacichPRO
    Fountain Hills, Arizona
    The claims paying ability of a life insurance company is assumed by those who purchase life insurance policies. And even if the historical record is untarnished in this regard, it can’t be cited by a licensed agent, nor can the guaranteed state fund be used in a sales presentation to manipulate the prospect. It is possible that a life insurance company could fall into receivership and the claims exceed the guaranteed fund and in such a case the life insurance may not pay the beneficiaries.
    Including in this answer is the two year life insurance company contestability period covering suicide and fraud. And some cases of fraud may extend past the two year contestability. The investigation of a homicide could reveal criminal intent by the beneficiaries, thus denying the claim. 
    Answered on May 20, 2013
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