Taken directly from the official SWG forums--------
Recently we have seen several instances of players dying and being unable to properly retrieve their items from their corpses. We are working on a fix for this problem, but it may take a day or two to fix and test.
In the interim, we don't want any more players to lose their things, so we're going to declare a temporary amnesty on death! Players who die will be treated exactly as if they were newbies using a free death:
No wounds
All items auto-insured
This is a temporary measure only, and real death penalties will return as soon as we fix the problem.
This temporary measure will be going into effect tonight. The exact time will vary per server, so I can't give you a more specific ETA than that--you probably want to still treat death as something dangerous.
-Raph Koster,
Creative Director
I don't know if this is still in effect or not, because most of the servers are all down right now, so I bet they are fixing it as we speak
It's definitely worth buying. I've been hooked for 3 weeks now. If you do decide to get it, play on Chilastra server, tatooine, Mos epsa. That's where you can find me and zeal and our PA guild.
The bug was fixed. No more newb deaths. Atleast you now know that when you die, you can pick your items up without having any trouble (which is why I keep most of my "misc" items in my bank and insure all of my in-battle items so I don't have to retrieve my corpse all the time) No biggy. These newb deaths saved my ass over 4 times last week. But now that I have gotten better, I don't need them.