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My brother-in-law bought life insurance on the last new car he financed. He died 9 months later.

When my sister notified the insurance company, they requested the last five years of his medical records. It seems to me that those things should have been requested before purchasing? Does this sound out of line to you?

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This greatly depends on the local laws and the insurance contract terms. If I remember correctly, my own life insurance policy does also have special terms in case I die within a year of applying, so it doesn't sound totally bogus.

For car loan insurance, the amount of coverage and premiums were probably low enough for the insurer not to want to spend the money upfront on the thorough investigation, but they probably do have a clause that covers them in case the insured passes away unreasonably quickly (unreasonably for a healthy person of the given age, that is).

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