Lawsuit over denied claim on a valid life insurance policy
We worry so much about the welfare of our family's future. That concern is why life insurance coverage in the United States totaled $18.1 trillion in 2009, with more than 40,000 total life insurance policies sold (ACLI,2009). These policies are intended as security, so that when the policy holder passes away, the life insurance company will compensate their beneficiaries financially. Sadly, many insurance companies find a reason to deny a claim on a valid policy. Weitz & Luxenberg finds this outrageous, and wants to help you receive your fair payment in your hour of need.
Why is the insurance company denying my valid claim?
In many states, regulations can prohibit a life insurance company from denying the payment of benefits if the decedent (or deceased) dies more than 2 years after the policy issuance. However, if your loved one passes away within 2 years of the policy’s issuance, the company will investigate and try to determine a way to deny your claim.
Life insurers commonly deny claims on valid policies where the insured has died within two years through what is known as "material misrepresentation". Material misrepresentation is the intentional or negligent concealment or omission of a fact on your application.
Material misrepresentation occurs in the form of untruthful answers concerning:
- Purposely or inadvertently omitting the names of doctors visited in the past 5 or 10 years.
- Drinking history
Insurers often use this legal tactic as a catch-all to avoid honoring a policy. In such cases, it is important to know that not just any misrepresentation can void the policy. The misrepresentation has to be “material”, meaning it must entail discrepancies in important facts such that the insurance company would not have initially issued that particular policy.
Denial in the guise of compensation
If the slightest mistake is found, the insurance company attempts to deny coverage and will send back a check for the premiums already paid.
These insurers will then tell beneficiaries to cash the check, which would invalidate their case against the insurance company.
Weitz & Luxenberg specializes in cases where the beneficiary does not cash the check. We know you may need help in collecting life insurance funds, and we have the litigation experience and expertise to help you win. Contact us for a free legal review of your case today.
Weitz & Luxenberg: Ensuring your insurance company pays
The skilled attorneys at Weitz & Luxenberg know you may need help in collecting life insurance funds, and we have the litigation experience and ability to help you recover. Contact us for
a free legal review of your case today. Weitz & Luxenberg is an experienced firm in life insurance law, and helping you or your beneficiaries receive justice for a denied claim on a valid policy.
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