ReliaStar Life Settles Suit Over Heath Ledger's $10 Million

 

Saturday, Mar 07,2009, 2:40:55 PM   Click:

ReliaStar Life Settles Suit Over Heath Ledger's $10 Million Policy Fran Lysiak
ReliaStar Life Insurance Co. has settled a lawsuit filed by a trustee representing movie star Heath Ledger's 3-year-old daughter, which alleged it wrongfully delayed paying out a $10 million death benefit.

Ledger, who played the Joker in the hit movie "The Dark Knight," died Jan. 22, 2008, at the age of 28 in New York. A coroner's report ruled that Ledger died from accidental causes involving abuse of prescription medications, according to press reports.

The Minnesota-based ReliaStar is a member of ING USA Life Group. Dana Ripley, a spokesman for ING, confirmed the case has been settled but declined to comment further.

The suit was filed by John S. LaViolette, the custodian of the $10 million life insurance policy taken out "by the insured for the benefit of insured's now 3-year-old child" (BestWire, Oct. 1, 2008). Housed in the U.S. District Court for the Central District of California, the action didn't mention Ledger or his daughter, Matilda Rose, but stated that the insured "died of accidental causes on Jan. 22, 2008." Under policy provisions, ReliaStar would not have to pay if Ledger committed suicide (BestWire, Oct. 1, 2008).

The suit alleged that after receiving notice of Ledger's death, ReliaStar and others sought to engage in "post-claims underwriting," which violates California law, by telling LaViolette to identify "all physicians who attended to the individual and all hospitals or institutions where the individual was treated" during the past 11 years along with Ledger's primary care physician and pharmacy.

However, based on the policy's contestability clause, which states that ReliaStar may "contest the validity of the policy based on material misrepresentations made in the initial application for two years from the issue date, during which time the insured was living," LaViolette alleged ReliaStar could no longer contest the policy's validity because Ledger was deceased.

ReliaStar, though, maintained that it had the right to contest the policy for a period of two years whether or not the insured was living or dead (BestWire, Oct. 1, 2008).

William Shernoff, one of the California-based attorneys who represented LaViolette, couldn't immediately be reached for comment.

ReliaStar Life Insurance Co. currently has a current Best's Financial Strength Rating of A+ (Superior).

(By Fran Matso Lysiak, senior associate editor, BestWeek: fran.lysiak@ambest.com)

Copyright © 2009 A.M. Best Company, Inc. ReliaStar Life Insurance Co. has settled a lawsuit filed by a trustee representing movie star Heath Ledger's 3-year-old daughter, which alleged it wrongfully delayed paying out a $10 million death benefit. Ledger, who played the Joker in the hit movie "The Dark Knight," died Jan.