In one of the Royal Commission's most harrowing case studies, reminiscent of a Hollywood film script about a relentless stalker, TAL Life Insurance admitted to pursuing an unwarranted agenda against one of its policyholders that left her veering towards self-harm, according to the firm's own in-house psychologist.The scene was set early in the cross examination by Rowena Orr, senior counsel assisting, who confirmed that TAL's share of the life insurance market was about 18 per cent.Orr then launched into a case study based on a former intensive care nurse who had taken out an income protection policy in 2009, and in May 2010 lodged a claim for anxiety that left her unable to work due to a generalised anxiety disorder.Her GP explained that the insured's symptoms were preventing her from working because she had experienced a loss of confidence in both nursing management and her own skills in dealing with patientsIn the witness box was Karen van Eeden general manager of claims for TAL Life Limited and its associated entities. Either by oversight or bad luck, van Eeden, who was appointed to that role in January of this year, found herself either having to justify or apologise for a long list of acts of bad faith directed by TAL's case managers and legal team at the client.The first attempt to void the nurse's policy was because TAL's case manager discovered the insured had taken six single days off work in 2008 and three in 2009.She had ceased work by 2010.Her GP argued strenuously against that interpretation, but TAL refused. The nurse went to the Financial Ombudsman Service which also found against TTAL.In an effort to avoid paying out $2,750 per month, a TAL case manager decided to hire a private investigator to shadow the former intensive care nurse for several days at a time, conduct a "desk research" investigation that would be seen as cyber-stalking at a cost of $20,000, months after the case had been decided 100 per cent against TAL - several times. With the unflinching support of FOS, the nurse successfully fought for a payout in the face of TAL's covert surveillance by a private investigator; demands that a daily activity diary be kept and other measures to delay paying out for the insured's inability to continue working due to anxiety and stress attacks. The stress further exacerbated the client's condition.The hearing was stretched out by TAL, asking for more time to make enquiries. FOS asked for copies of parts of TALs underwriting guidelines ... "And that created a bit of internal consternation within TAL", Orr observed.Some months after the insured won the argument and a reluctant  TAL had paid out - another process that was dragged on for months - a TAL case manager saw the value in paying a private investigator $20,000 to follow the former nurse around.Van Eeden continues in the witness box today, followed by Lachlan Ross from REST, and Paul Sainsbury from AMP.