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Golden Rule Insurance Company v. Montgomery

Insurance Breach of Contract, Bad Faith

We help victims of insurance breach of contract and insurance bad faith obtain their rightful compensation. Our attorneys are highly trained in this area of the law. We work hard on your case so you don't have to. Below is an example of one case we took to the United States District Court Arizona.

Insurance Breach of Contract, Bad Faith

Download the final opinion
to read or print out:

United States District Court Arizona Opinion of
Golden Rule v. Montgomery

On January 23, 2002, Montgomery applied for insurance with Golden Rule Insurance Company. The application form included a medical history section and required an authorization releasing Montgomery's medical records to the Golden Rule.

In February of 2002, Golden Rule issued Montgomery an insurance policy. Montgomery canceled all other insurance policies, allegedly at the request of Golden Rule. On May 16, 2002, Golden Rule requested that Thomas Montgomery complete and return a "Claimant's Statement and Authorization." Golden Rule also requested treatment records dating from January 23, 1997.

In September of 2002, Thomas Montgomery was hospitalized for a perforated colon, which required surgery. The resulting medical expenses totaled over $250,000.00, which was billed to Golden Rule.

On December 10, 2002, Golden Rule received the completed "Claimant's Statement and Authorization." After reviewing the medical records, Golden Rule believed Montgomery failed to disclose certain information related to Thomas Montgomery's medical history. Golden Rule alleges that it would not have issued the policy if it had known about the omitted information.

On February 27, 2003, Golden Rule advised Montgomery that it was rescinding the policy. Golden Rule refused to pay any medical expenses incurred during the policy period, including the expenses related to the perforated colon, on the grounds that Montgomery made false statements on their insurance application. Golden Rule refunded the premiums paid by Montgomery, which amounted to $85,453.47. Montgomery did not endorse or cash the check.

On August 7, 2004, Montgomery filed an Answer and Counterclaims asserting claims of breach of contract and bad faith, and seeking punitive damages, compensatory damages, and attorney's fees. Montgomery won on breach of contract.

Read the entire court case document here: United States District Court Arizona Opinion of Golden Rule Insurance Company v. Montgomery

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