A woman took out an insurance policy through her bank which covered her for $50,000 of permanent disability and $500,000 life cover. When filling out the application form the woman wrote her weight as 119 lbs when in fact she was 119 kgs. She was later diagnosed with Cancer and went to make a claim only to discover the bank declined her claim and cancelled the policy due to the wrong information given about her weight. The bank did pay the woman $5,000 in refunded premiums "out of sympathy for her situation".
It is worth reading. There is some suggestion that the bank staff member, who was present while the form was being completed, should have spotted the discrepancy between the form and the weight of the person sitting in front of them. Had this been a non-underwritten policy, it seems unlikely the premiums would have been refunded.
Click here to read more about her story.