An insurance claim does not immediately end when an insured dies. The insurance claim is a legal right under the insurance policy that passes to the estate of the insured. In fact, in Minnesota the statute of limitations can be extended when a person passes. The estate of the deceased can continue the claim. Typically, the individual who files in court to pursue the insurance claim on behalf of the estate is the personal representative. The personal representative is usually appointed by the will, and after death that appointment is endorsed by the probate court.
Another named insured can continue the claim. For example, a spouse is usually another named insured on the policy. The surviving spouse thus has every right to continue the insurance claim. In addition, policies often discuss additional insureds by operation of the policy even when not specifically named. Additional insureds can also continue the claim.
While an estate can pursue the insurance claim in court there can be unique challenges. All the terms and conditions of an insurance policy still apply to the claim. That includes the requirement for reasonable notice, and an opportunity for the insurance company to investigate the claim. Years ago, I had a case where a very elderly person did not notice hail damage and passed. The estate then filed a claim nearly two years later. We timely filed the case under the statute of limitations, but the insurance company argued the claim should be denied because it was given late notice of the claim and thus it was unable to investigate. The idea is hail strikes on shingle roofing fades over time, and that fading prejudiced the insurer’s ability to investigate.
I argued on behalf of the insured that the notice requirement in the policy was to give notice as soon as practical given the notice language in the policy. That was the real obligation. Moreover, I argued that any time an insurer argues late notice it must prove prejudice by the alleged late notice, and the law does not assume it. The district court agreed with my argument, denied the insurer’s motion to dismiss, and allowed the case to proceed to a jury as to whether the insurance company was truly prejudiced by the alleged late notice.
Do not hesitate to contact me if you would like to pursue an insurance claim and have any questions. I can be reached at ed@beckmannlawfirm.com