Insurer sues over policy in suicide-by-hire case

Principal Life Insurance Co. filed suit Friday to rescind a $4-million life insurance policy it issued barely a month before his death to Jeffrey Locker, the North Woodmere motivational speaker who is suspected of arranging for his own killing in Harlem last year.

The lawsuit, filed in federal court in Brooklyn, makes no reference to allegations of suicide-by-hire but claims that the policy should be canceled because Locker allegedly lied on his application - overstating his income and falsely saying that he planned to replace another $4 million policy, which he instead kept.

"If the true facts had been made known to Principal Life by Locker prior to the time of the issuance of the policy, the policy would not have been issued," the Iowa company said in its court complaint.

Locker, 52, was found stabbed to death in his car in East Harlem on July 16, 2009. Kenneth Minor, the man charged with his murder, has told police that Locker gave him an ATM card in return for the execution, saying that he was deep in debt and wanted his family to be able to collect insurance.

Prosecutors have acknowledged that Locker had $18 million in life insurance coverage at the time of his death, was heavily in debt, had inquired about funeral arrangements, and had sent his family messages about videos he left for them.

The Principal policy, naming Locker's company the Locker Group as beneficiary, was applied for in April 2009 and issued on June 4, 2009, the complaint said. In his application, Locker said he was making $800,000 a year and was worth $6 million. He said he already had a $4 million policy from Prudential, which he planned to cancel.

Life insurance policies do not pay off for suicides that happen within two years of a policy's issuance. In a listing of policies on his application, Locker indicated that he had $8 million in policies issued before 2007. He took out a $2 million policy in 2007, the $4 million with Prudential in 2008, and the Principal policy in 2009 - suggesting that $8 million to $10 million may be at stake if he killed himself.

Minor's lawyer, Daniel Gotlin, said the lawsuit reaffirmed his belief that his client was guilty of only aiding a suicide.

Locker's family could not be reached for comment.