Sagan v. Prudential Insurance Co. of America

In this action by the beneficiary of a life insurance policy against an insurer, we conclude that § 33-20-121(2), MCA, must be read into an insurance policy containing an otherwise valid suicide exclusion. Therefore, we affirm.

The facts of this case are not in dispute. Prudential Insurance Company of America (Prudential) issued a life insurance policy to Samuel Sagan on July 1, 1989, providing for payment of $50,000 in benefits upon his death. Samuel Sagan died on September 22,1990, as a result of suicide. Carol Sagan (Sagan) is Samuel Sagan’s widow and the named beneficiary under the…