Now that we are telling insurance and lawyer stories, I have a fun one. My father owned a small life insurance company for about 30 years, selling mostly small policies. One day the monthly premiums quite arriving for a particular policy and after several months (required by law), the policy was terminated.
About 2 months later the wife of the policyholder called and asked what it would take to place the policy back in force. She was told "pay the back premiums". She did, the policy was reinstated. Another 2 weeks goes by, she calls again and says "my husband died". She was requested to send a copy of the death certificate. When that document was received it was clear the man died during the period the when the policy was not in force, well before the back premiums had been paid.
The claim was denied. The wife hires an attorney and sues. My father's attorney reviews the case and says "it will cost you $30k for me to defend it, you might as well pay the $5k claim. It will also save a lot of time and agony".
This was not all that odd of an event. I used to here 4-5 stories a year that were very similar. This is like shoplifting, we all pay.