Omaha mother wins $11.3M after insurer refuses late husband's $350K life insurance claim

A Douglas County jury in Nebraska has awarded $11.3 million (£8.7 million) in damages to an Omaha mother of 10 children. The jury found that Farmers New World Life Insurance acted in bad faith when it refused to pay her late husband's $350,000 life insurance policy after he died from COVID-19. The verdict was delivered on 16 October 2026, bringing years of legal battles between Vaneza Ramos and the insurance company to a major decision.

The details come from court documents and statements released by her lawyers at Pesek Law. The case involved two separate jury trials in the District Court of Douglas County under case number CI 22-2057. The final ruling against the insurer followed a six-year legal fight.

It began after Ramos lost her husband and was left to care for her family and newborn baby while facing an uncertain financial future.Policy purchase and claim refusalIn 2018, Ramos's husband, Jose Gaitan, was encouraged by a local Farmers Insurance agent to transfer his existing life insurance coverage to the company. Gaitan then bought a $350,000 (£269,000) life insurance policy.