EDWARDSVILLE, Ill. (CN) - A disabled woman claims American General Life and Accident Insurance misled her and rewrote her policy to deny her benefits.
Susan Manners became disabled in 1991 when she was injured in a car accident, she says in her complaint in Madison County Court.
Manners says American General made her keep paying monthly premiums through 2010, even though she had a disability rider on her policy.
"The same AGLA agent collecting premiums before the accident then collected premiums after the accident," the complaint states. "After the accident, the agent knew Manners was disabled because she was in bed whenever the agent came because she could not walk or dress herself. Manners specifically notified AGLA's agent that her doctors told her she would never walk again."
Manners said she had to take out a loan against the policy in 1995 to pay off medical bills from the accident. As part of the process, American General agent Timothy Haddad, a defendant, visited Manners in connection to the change in her policy.
"Haddad also saw Manners in bed," the complaint states. "She told him that she was disabled. Not only did Haddad have actual knowledge of her disability, he asked to see her disability papers in order to indicate how much income she received when he rewrote the policy, on which included the rider. [Sic]
"Notwithstanding his notice of Manners' disability, Haddad for his own pecuniary benefit and on behalf of AGLA, omitted her disability status and history on the application despite notice thereof."
Manners says she did not know she was exempt from making her monthly payments until a different American General agent brought it up in 2010.
She seeks actual and punitive damages against American General and Haddad for violations of the Illinois Consumer Fraud and Deceptive Business Practices Act. She is represented by Andrew Kuhlmann of St. Louis.
Read the Top 8
Sign up for the Top 8, a roundup of the day's top stories delivered directly to your inbox Monday through Friday.