September 30, 2008

Heath Ledger's $10 Million Life Insurance Payout Stalled By Suicide Investigation: Report

By Gil Kaufman (MTV.com)

The insurance company that held a $10 million life insurance policy on late actor Heath Ledger has not yet paid out because the company believes the actor's death was "suspicious." If the company deems his death a suicide, the policy would be invalid.

According to a lawsuit filed by the trustee for Ledger's 2-year-old daughter, Matilda, ReliaStar Life Insurance Company wrote the policy on the actor in June 2007, six months before the Dark Knight star died of what officials determined was an accidental drug overdose, TMZ reports. Matilda's lawyers - who are charged with holding the money for the toddler - believe the insurance company is attempting to drag the case out in court to avoid paying the $10 million.

According to TMZ's report, instead of promptly paying the policy out, ReliaStar began investigating whether Ledger committed suicide, which would nullify the policy; the New York City Medical Examiner ruled the death accidental.

Unnamed sources cited by TMZ claimed that lawyers for the insurance company have dubbed Ledger's death "suspicious," suggesting it could have been a suicide. In its answer to the suit, ReliaStar claims that it is "entitled to investigate Plaintiff's claim to determine if the 'Suicide' provision is applicable." The suicide provision states that "if the Insured commits suicide ... we will pay only the amount of premiums paid to us."

Matilda's lawyers have been told that ReliaStar's attorneys plan to depose the actor's friend Mary-Kate Olsen, the masseuse who found his body, some of the actors from his last film, his agents, doctors, psychologists and others.

The site also cited unnamed sources as saying that ReliaStar believes Ledger may have lied on a pair of questions on his insurance application - whether he was taking prescription drugs when he filled out the application and whether he ever used illegal drugs. In answer to the suit from Matilda's lawyers, the insurance company claims that it can contest the policy if Ledger lied on his application. Matilda's lawyers are accusing ReliaStar of openly violating a California law that prohibits insurance companies from re-examining insurance applications after the policyholder dies.

Ledger reportedly had a prescription for the sleep aid Ambien when he filled out the insurance application, but neither Ambien nor any illegal drugs were found in his system when he died. An unnamed ReliaStar source told TMZ, "No decision has been made on the claim."

Though Ledger left his estimated $16 million estate to his sisters and parents, father Kim Ledger said the family has gifted the entire fortune to Matilda, according to Australia's Herald Sun.