Guarantee Trust Life Insurance Seeks New Trial in Bad Faith Cancer Case Posted on December 2, 2014 by Sally Nyemba Guarantee Trust Life moved for new trial after judgment for 4.75 million was entered against it. Guarantee Trust Life Insurance Company has filed a motion for new trial in Colorado, requesting that a $4.75 million bad-faith verdict be overturned. The company has held liable for denying a claim filed by a cancer patient, who died days after the verdict. Prior to purchasing a life insurance policy with Guarantee Trust, Michael Casper, 61, of Denver, was undergoing treatment for a disease known as BPH, a noncancerous disease that affects men and causes prostate enlargement. At the time of the purchase, insurance broker Joanna Gaylord, informed Casper that Guarantee policies required that: He had no prior history of having a stroke. No prior history of heart attack. No prior diagnosis of cancer. After finding that Casper met the insurance policy requirements, he proceeded to apply for the policy. Less than a year later in March 2011, Casper was diagnosed with protate cancer following a biopsy. Casper then submitted a supplemental insurance claim. However, Guarantee denied Casper’s claim, asserting that he had “received medical advice and treatment prior to the effective date of the policy that resulted in the diagnosis.” Casper was represented by David R. Jones of The Law Offices of D.R. Jones of Denver, Colorado, and brought an action against Guarantee. In his amended complaint, Casper alleged, “breach of contract, bad faith breach of insurance contract, and violation of Colorado statute C.R.S. §§ 10-3-1115 and 10-3-1116, which state, “A person engaged in the business of insurance shall not unreasonably delay or deny payment of a claim for benefits owed to or on behalf of any first-party claimant.” At trial, “[Guarantee] refused to live up to their name in handling Casper’s claim,” Jones said. Guarantee argued that it was not responsible for Casper’s claims because he had already been diagnosed with cancer prior to obtaining the policy, and therefore it was void. The jury rejected Guarantee’s defense. The case is Michael D. Casper v. Guarantee Trust Life Insurance.