|> >Suppose someone takes out life insurance and "forgets" that he has
|> >cancer or AIDS. The insurance company can't be liable in such a case,
|> >can it?
|>
|> That's why they require blood tests.
|>
Not even _that_ is really necessary to protect the insurance company. there
are "guaranteed issue" life insurance policises, where not medical test
is required, just your answers to a health questionaire (which could
be very brief). If the insured had "forgotton" that he had cancer or AIDS, well, that would be termed a "pre-existing condition", and a condition that would in almost all cases NOT be covered according to the language of the insurance policy.
Now. The patient dies. Does the insurance company pay? No, not if the
company is any good (at what they do). The claim would first be
investigated to see if the condition was "pre-existing" (note: private investigation would be used in addition to MIBs (medical information bureau) scans). This process is called "adjudicating the claim". The practice is standard for AIDs claims, with most companies.
In the above case the insurance company would probably not be liable and
probably not have to pay.
Unless there was soon loophole in the policy language favoring the consumer!
