Key Person - Case Study
Background
Sole owner of a substantial Private Company.
As business was developing the Company insured him as a key person primarily to ensure debt was reduced.
In 2003 refinanced secured Line of Credit and Bank requested $15 million additional cover.
Following presentation of detailed financial and medical information, cover was put in place.
The Event
Within 2 years client was killed in an accident.
Because of the sums (in excess of $20 million) legal advisers from a number of parties became involved.
Mainstay advised the client’s legal advisers as to the process and issues that would be addressed.
The accident involved an activity that the client had taken up after the policies had been issued.
Because of our detailed record keeping and processes Mainstay was able to provide the relevant parties with a full record of all the various steps taken with regard to the policies.
This included full record of the application process which supported the valid claim, especially regarding participation in the activity in which he subsequently died.
This information was supplied to all legal advisors as a complete record on a CD.
Following a full investigation all Insurers paid the various claims.
