Has a life insurance company denied your claim
on a valid policy?
Many of us are concerned about the welfare of our family's future and, thus, choose to purchase a life insurance policy. That policy is intended as security, so that when the policy holder passes away, the life insurance company will pay their beneficiaries money.
In many states, there are regulations that prohibit a life insurance company from denying the payment of death benefits if the decedent died more than 2 years after the issuance of the policy. However, if the decedent died within 2 years of the policy’s issuance, the company will usually investigate to see if it can find a way to deny the claim.
The most common way life insurers are able to deny claims on a valid policy where the insured has died within two years is through so-called "material misrepresentation" within the insurance application--the intentional or negligent concealment of a fact, such as the names of doctors visited in the past five or 10 years.
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 any misrepresentation can avoid the policy. The misrepresentation has to be “material”, i.e. it must entail discrepancies in important facts such that the insurance company would not have issued the policy it did had it known all of the facts.
Each time a person dies within two years of the issuance of a life insurance policy, the insurer investigates the matter to see if there are any misrepresentations on the application.
If even the slightest mistake is found, the company will attempt to deny coverage and will send back a check for the premiums already paid. It will then tell the beneficiary to cash the check.
Weitz & Luxenberg handles such cases where the beneficiary does not cash the check (which would invalidate their case against the insurance company.)
If you need help in collecting life insurance funds, we have the litigation experience to help you win. Please contact us for a free legal review of your case and we will be in touch shortly.