hinchcliffe

My wife asked the question to me. Morbid I thoiught, but very true. Is the standard Term Policy going to cover a death at a DE? Anyone ever asked the question? I was planning to call mine to see what they say.

krystar

i would think so...

although pretty sure skydiving is not covered

Dave 86 930 Fl

My policy specifically asked if I was "Racing" cars, so I'm of the opinion that my death during a DE would be covered. As with most insurance companies, their inital response would most likey be to deny coverage and that's where a good attorney comes in.

Regards, Dave

Dave 86 930 Fl

As far as my ability to spell correctly, that's another issue.

Lemming

I'm covered through MetLife at my university. I specifically asked this question about both DE and racing and I am covered. I would ask you agent as policies vary. I am not covered if killed while piloting a private plan, good thing I don't know how to fly

911FM

Mine covers it. I looked into this issue when purchasing a new policy this year. You have to read the fine prints and it depends on the wording of the questionnaire. I studied it with my agent. The comments below may not be applicable in your state or for your insurance company.

There are 2 things to check:
1. The policy itself and any outright exclusions
2. The questionnaire which you have to fill-out, based on which they set the rate and accept your application.

The policy is pretty easy to check. Just ask your agent for a copy, which you should have in your safe anyway. If it is excluded, you are out of luck. Chances that it is are pretty slim though as the policies tend to be pretty simple and broad. Heck, they usually even cover suicide after 2 years.

The questionnaire may be a bit more complex. Obviously, at the time of application you have to answer truthfully or risk the insurance policy being void.
Mine was asking something like if I had participated in motorsport racing or competition. I verified that I could honestly and safely answer no, as DE is not racing or competition and I do not intend to do anything else for the moment. (They did ask me if I had an exotic car - they defined a Porsche as exotic, go figure).

If you were not doing DE at the time of the questionnaire and/or answered the question truthfully based on its wording, everything is fine. Unless it is stated as an exclusion in the policy, they cannot hold you to the questionnaire answers all your life as your activities and interests may change. The risk of you picking up a dangerous activity, a disease, or commiting suicide, etc. is factored into the rate. Just don't sign up for skydiving school a month later.

My agent also told me that even if you had mistated something in the questionnaire, the insurance company could only void the contract if you die in the next 2 years. After 2 years, it does not matter. They cannot deny coverage based on your misstatements at the time (personal or medical).

You can do your own research but here is a link as an illustration of the concept.
http://www.douglasturner.com/2007/12...ne-year-rules/

Hope this helps.

FM

RonCT

Easy enough - look at your policy and read the exclusions. Why ask a loaded question when the agent or carrier is going to not want to cover something that you think is questionable?

Same with DE coverage of your auto policy. My auto policy says specifically: Excluded are timed racing events (shorthand). Educational non-timed drivers education are clearly "not excluded". I have a long standing relationship with my agent (20 years) and we talked about what DE is and he agreed with my thought. But most would probably say "no" to discourage you from doing it.

DaveM993

If you have had the policy more than two years...you are likely covered regardless. Check the language. Many policies cover you for everything (unless it is specifically excluded for the term of the policy) after 2 years, even if it is for something you misrepresented during the application process.

RickBetterley

Marc Miller on this list has as good an explanation of this as anyone. Use search and you will find the discussions that have come up previously.
You will mostly find 'no worries' for policies that were bought before you started track events. For new policies, the application will ask about racing and is a warranty on the policy (which means if you lie they can rescind (not pay) on the policy BUT that if your death (ugh) is more than 2 years after that policy is issued, it will pay).
Don't you love insurance?

mhm993

Yup--don't ya' just love the complexities. Actually, I think Rick built a career guiding clients through those complexities.

Actually, on life insurance, it's pretty cut and dry. If, at the time of the application, you truthfully answered the questions on the application, including any questions about "hazardous hobbies", life insurance policies generally have no exclusion for death resulting from DE or similar avocations. If you were not participating in the activity at the time of application, and subsequently started driving at the track, you generally have no responsibility to notify the insurer of the change. Like a change in health, they're stuck with you.

We've found that even if you're club racing, life insurance is generally available regardless of your participation, and without additional premium because of the activity. But it's important to answer those questions truthfully, answer only what they're asking, and to present the activity in a manner that an underwriter (picture a guy with a pocket protector, painfully afraid of fun) will understand.

But to answer the original question, a death resulting from a track activity is generally covered by term life policies as long as you made truthful disclosures at the time of application.

Please remember I'm staying at The Falls, not a Holiday Inn tomorrow, I'm not an attorney nor do I play one on TV, and that you can't accept anything you read on the interweb as an opinion.

VERBOTN

ING had a secondary questionaire regarding racing, not a problem.