Cheney v. Bell National Life Insurance

GILBERT, Chief Judge.

Twenty-four year old Anthony C. Cheney died as a result of receiving a blood transfusion. Unfortunately, the blood contained the dreaded Acquired Immune Deficiency Syndrome virus (AIDS). 1 His surviving spouse, Theresa M. Cheney, made claim under an accidental death insurance policy issued by Bell National Life Insurance Company (“Bell”). Bell refused payment on the ground that Mr. Cheney’s demise was not occasioned by accidental means. Rather, Bell asserted that Mr. Cheney’s death, even if an accident, resulted from a cause that was specifically excluded from policy…