KRviator is spot on.
Legally the insurer would be entitled to seek recovery and would normally have a watertight case - in circumstance where a suicide note is left as evidence of the pilot's intention. However there are other things to consider being (1) possible negative publicity and (2) uncertainty as to value of the estate. The amount to be recovered (hull value) is also a factor.
In a subrogation recovery action the proceedings would be issued in the insured's name (ie: the aeroclub for example) and so this would mask the insurer's identity somewhat. If the aircraft was of high value and the pilot's estate known to be substantial, the insurer may be tempted to seek recovery.
In this case I can advise that all things considered, no recovery was undertaken.
TB
Last edited by TunaBum; 8th Nov 2016 at 10:30.