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Brian Neiman was involved in the illegal practice of law for over seven years. Having been found guilty of illegally practicing law, he sought to collect disability benefits under his disability insurance policy with Provident Life due to an alleged bipolar disorder, the onset of which occurred during the pendency of criminal and bar proceedings against him. Neiman contends that his bipolar disorder prevents him from working as a paralegal. Provident contends that Neiman should not be indemnified for the loss of income generated from his illegal practice of law.

Should Mr. Neiman be able to collect disability benefits under his disability insurance policy even though he was engaged in an illegal act? Why or why not?

User Xinthose
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Final answer:

Mr. Neiman may not be able to collect disability benefits under his disability insurance policy even though he was engaged in an illegal act, as insurance policies typically exclude coverage for losses that result from illegal activities.

Step-by-step explanation:

Mr. Neiman may not be able to collect disability benefits under his disability insurance policy even though he was engaged in an illegal act. This is because disability insurance policies typically have provisions that exclude coverage for losses that are a result of illegal activities. In this case, Mr. Neiman's loss of income was directly related to his illegal practice of law, so the insurance company, Provident, can argue that he should not be indemnified for that loss. Insurance companies have the right to deny coverage for losses that are the result of illegal activities, in order to discourage illegal behavior and protect the principles of insurance.

User BPX
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