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Date: 02-01-2010
Case Style: Jennifer Latham v. Time Insurance Co. d/b/a Assurant Health
Case Number: 2006CV1040
Judge:
Court: District Court, 20th Judicial District, Boulder County, Colorado
Plaintiff's Attorney: Marc Levy, Levy, Morse & Wheeler, P.C., Greenwood Village, Colorado
Defendant's Attorney:
Description: Jennifer Latham sued Time Insurance Co. on a bad faith breach of contract theory claiming that Defendant wrongfully denied benefits under the insurance policy that she purchased from it based on her failure to disclose previous medical treatments, namely an emergency room visit for shortness of breath and treatment for uterine prolapse. Latham was seriously injured in an accident and the company refused to cover about $185,000 in medical bills from the accident.
Latham, now 39, suffered multiple compound fractures and a brain injury when a suspect fleeing police rammed into her car in October 2005 near the intersection of 23rd Avenue and Collyer Street in Longmont. She was disabled by her injuries and financially broken as a result of Defendant's refusal to pay for her care.
Defendant claimed that it investigations into full disclosure of past medical treatment are not based on the cost of a claim but are only initiated when someone makes a claim related to a chronic condition that is likely to have existed before the person requested insurance coverage. It also claimed that policies are canceled only when the missing information would have affected the decision to insure that person. It also asserted that it would not change its policies of only canceling coverage in cases of deliberate fraud, as opposed to simple error or misunderstanding.
Outcome: Plaintiff's verdict for $37 million.
Plaintiff's Experts:
Defendant's Experts:
Comments: Editor's Note: The jury's reaction to Defendant's business practice was not unusual. What is unusual about this case is that Colorado makes it legally possible for consumers like Latham to file suit for the harm that she sustained as a result of Assurant Health's conduct.