Estate of Torres v. Monumental Life Insurance

MEMORANDUM ***

The Estate of Rudy Torres (“Estate”) appeals the summary judgment dismissal of its claim against Monumental Life Insurance Company alleging breach of the covenant of good faith and fair dealing by denying accidental death insurance benefits following Torres’ death. Monumental Life claims Torres’ death was caused by his taking a drug other than as prescribed by a physician, and benefits were therefore excluded by the policy.

The district court did not err in granting summary judgment on the Estate’s claim for breach of the covenant of good faith and fair dealing. The record shows that Monumental Life made a reasonable investigation into the claim for benefits, reviewing Torres’ records, interviewing several doctors, and exploring the contention that Torres’ liver was not able to metabolize his medication. Further, a genuine dispute exists as to the circumstances of Torres’ death, in particular, whether the medication he ingested was taken “as prescribed by a physician” and his liver failed to metabolize it, or whether Torres ingested an overdose. California law provides that denial of coverage is not unreasonable and does not constitute bad faith if there is a…