Bankrupt Water Park Operator’s CEO Life Insurance Loss Justified

Alabama’s high court overturned an $11.5 million “key man” life insurance judgment in favor of bankrupt water park operator Apex Parks, finding the company’s deceased former CEO misrepresented his medical history.

Protective Life Insurance Co. was entitled to rescind a $10 million policy issued to Apex Parks in 2016 before company founder Alexander Weber died from heart issues, the Supreme Court of Alabama said in a Sept. 18 decision. A trial judge erred by sending the coverage dispute to a jury instead of ruling as a matter of law on the insurer’s decision to rescind the policy, it said.

Weber ...