Young widower pushes for change in Mass. life insurance law

By DENISE LAVOIE, AP Legal Affairs Writer 14 minutes ago

ASHLAND, Mass. - When Jenny and John Crowley learned they were having a baby, they did the responsible thing: they bought life insurance.

The Savings Bank Life Insurance Co. of Massachusetts was so taken with the Crowleys, the company used a photograph of their newborn daughter swaddled in a yellow blanket on the cover of one of its brochures.

"I took solace in the fact that I had this life insurance policy that was designed to protect me financially. Without that, it put a lot of stress on me," John Crowley said. "Financially, I was thinking about how am I going to care for my daughter, how am I going to be a mom and a dad? It‘s a very rough and kind of scary situation."

SBLI, which has since settled with Crowley, acknowledges that it changed its own policy several months ago and is now supporting Crowley in his fight for the legislation, dubbed "Jenny‘s Law."

In most states, "good health" is clearly defined in insurance laws, but in Massachusetts the courts have relied on precedent set in cases dating back to 1920 that put the burden on policyholders to demonstrate that they were in good health when the policies were issued.

In Jenny Crowley‘s case, SBLI cited the "good health" provision, which says the person insured must be in good health when a policy is issued, and the "incontestability" provision, which says that for a certain period after a policy is issued, usually two years, an insurer can rescind a policy or refuse to pay a claim.

State Sen. Karen Spilka, who introduced the proposed change to the law, said the provisions are meant to prevent fraud and should not be invoked in cases like Jenny Crowley‘s.

Several state and national insurance associations said it was difficult to estimate how often a case like the Crowleys‘ could occur.

A month later, her doctor examined her breasts during a postpartum checkup and no abnormalities were noted. Two months later, a doctor noted some breast firmness and suggested that Jenny see a specialist as a precaution. A biopsy showed that she had stage IV breast cancer.

John went to work for an accounting firm, while Jenny was an account manager at an advertising agency. In 2002, they bought a house in Ashland, about 25 miles west of Boston. The following year, they were overjoyed when they learned Jenny was pregnant.

They chose SBLI because their rates were competitive, and Jenny had managed the company‘s advertising. After Kaitlyn was born, SBLI asked if they could use her photo on their marketing brochure.

"If only every decision were as easy as choosing the right life insurance," reads the brochure‘s headline.

Some in the insurance industry were initially concerned that the proposed legislation would preclude companies from denying claims when they suspect fraud. But the industry now supports the measure.

"We believe the bill strikes a reasonable balance, enabling consumers to challenge claims decisions while preserving insurers‘ ability to protect against fraud and misrepresentation," said Andrew Calamare, president of the Life Insurance Association of Massachusetts.

John Crowley, now 34, testified before the state legislature about the proposed law.

"I feel like I have a moral obligation to prevent this from happening to anyone else," he said.



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