Young widower pushes for change in Mass. life insurance law

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.

Both are standard in life insurance policies, and insurers generally closely scrutinize claims made within the two-year period, said Edward Graves, a professor of insurance at The American College, a financial services college based in Bryn Mawr, Pa.

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.

"When somebody is going through grieving the loss of a spouse, particularly someone so young, to have to think that you've taken all the steps that you're told to be taking, to then find out that well, because of this possible technicality, that you may not get what you thought you were getting is just not fair," she said.

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

In July 2004, Jenny Crowley passed a medical exam and blood work done by SBLI.

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.

Jenny and John had known each other since elementary school, and were high school sweethearts. John proposed at the top of the Arc de Triomphe in Paris in 1999, and they were married a year later.

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.