Heath Ledger's life insurance refuses to pay out on suspicion of suicide

TMZ are running a very interesting story about Heath Ledger. Fascinating, you may say, but what exactly does that have to do with an insurance blog?

Well, six months before he died Ledger took out a $10 million life insurance policy; the money from this policy would go to his two year old daughter Matilda if anything happened to him. After his death the New York City Medical Examiner ruled that his demise was accidental. Despite this ReliaStar, the company he took his policy out with, suspected suicide, which would render the policy null and void, and proceeded to investigate.

ReliaStar's lawyers believe Ledger lied in his application about not taking any prescription or illegal drugs and have informed Matilda's lawyers they intend to take depositions from Mary-Kate Olsen, the masseuse at Ledger's home when he died, colleagues on his last film, his agents, doctors, psychologists and others. Claiming they could contest the policy if Ledger lied in his application, they also demanded details of all physicians and hospitals where Ledger was treated since 1996.

Lawyers for Ledger's daughter say it's an obvious ploy to drag the process out, for what could be years, to avoid paying out and in violation of California law. They have filed a lawsuit claiming ReliaStar has acted maliciously, fraudulently, and in bad faith by not promptly paying the $10 million.