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Heath Ledger's Insurance Company Refuses To Pay His Estate; Tries To Prove His Death Was A Suicide

September 30, 2008 8:01 a.m. EST

Anne Lu - Celebrity News Service News Writer

Los Angeles, CA (CNS) - Heath Ledger's insurance company is trying to wiggle its way out of paying the actor's estate a hefty settlement.

It was recently revealed that the late actor's father Kim will be giving the whole of his estate to his 2-year-old daughter Matilda without challenge. However, ReliaStar Life Insurance Company is allegedly refusing to pay Ledger's full insurance policy, insisting that his death could have been a suicide.

The company believes that Ledger, who died in January from accident overdose of prescription drugs as ruled by the New York Medical Examiner's Office, believes that his death was actually a suicide; thus, they are not expected to pay $10 million to the "Brokeback Mountain" actor's family.

In a lawsuit filed in July by attorney John S. LaViolette, who is the custodian for the benefit of a minor of Ledger's life insurance policy, ReliaStar is attempting to worm its way out of paying the estate. The insurance company is also investigating on its own if the actor's death can be classified as suicide.

ReliaStar is apparently contesting to pay Ledger's policy on the grounds that he lied on his application when answering the questions if he was or was not taking any prescription drugs at that time.

However, attorneys for Matilda's trust says that the insurer's investigation is in violation of the California law, because the state forbids companies to reexamine insurance applications after the policyholder dies.

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