Denied Life Insurance Claim Due to Misrepresentations on a Life Insurance Application

Life insurance claims get routinely denied by large insurance companies. Certainly, not all life insurance claims are incorrectly denied. In this blog, we are writing only about those life insurance claims that have been wrongfully denied.

Wrongfully denied life insurance claims can be collected with the help of an experienced life insurance attorney. At our firm, we represent beneficiaries whose life insurance claims have been denied for different reasons, including misrepresentations made on an application for life insurance.

When people take out life insurance, they are asked to answer several questions about their health and medical history. Such questions may ask an applicant about specific diseases, diagnostic tests and medication or they may be vague and group diseases into categories.

Answers to these questions are assessed by the insurance company when it evaluates the risk involved in insuring a particular individual. If a policy is issued based on the answers provided and the insured dies within the first two years of the policy effective date, the insurance company has a right to contest it, or request the insured’s medical records to check if the answers were truthful.

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AD&D Claim Denied Due to a Sickness Exclusion

AD&D (accidental death and dismemberment) insurance provides coverage in cases of accidental death and dismemberment. In regard to death, AD&D is available only when the insured died as a result of an accident. an AD&D policy will not pay benefits for deaths due to natural causes (which are generally covered by regular life insurance).

Unfortunately, life insurance companies that sell both life insurance and AD&D coverage do not explain in detail the difference between the two types of policies and many policyowners do not know that their AD&D covers only accidental death.

It is important to read the whole policy carefully to understand its provisions and conditions before purchasing it.

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Divorce and Federal Employee Group Life Insurance

The laws governing life insurance benefits for divorced federal employees and their former spouses are very complex. The Office of Personnel Management (OPM) is the federal agency that processes life insurance claims for former and surviving spouses of federal employees. OPM often reviews divorce decrees and court orders which specify which benefits are due to the claimant.

Many issues may arise when a FEGLI claim is filed after a federal employee’s death.

The most popular reasons a FEGLI claim may be denied are: invalid beneficiary designation, beneficiary contest, multiple FEGLI claims filed for the same benefits, divorce, child support orders, divorce court orders articulating how life insurance proceeds are to be distributed, etc.

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Collect a Denied Mortgage Life Insurance Claim

Mortgage life insurance, or mortgage insurance as some people call it, is a life insurance policy that you buy on the life of another person with whom you may have a mortgage togetherIn the event of that person’s death, the proceeds from the mortgage life insurance policy will go towards paying off the remaining mortgage on your property.

Usually, married people buy mortgage life insurance protection on each other’s lives if they own a house together. In such cases, the spouses pay for the coverage to the insurance company and, in return, the insurance company agrees to pay off the remaining balance on their mortgage when one of the spouses dies.

Mortgage life insurance is popular today, because more and more people choose to marry and buy real estate later in life. As a result, it is more likely that one of the spouses will pass away during a 30-year mortgage period.

If this happens and the mortgage on the marital property is substantial, the surviving spouse may face financial challenges that can be easily avoided with mortgage life insurance.

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When Can You File an ERISA Lawsuit?

ERISA controls many group life insurance plans. Among the many rights the law gives to plan members and participants is the right to bring a suit to recover plan benefits.[1] The question is: when can you file a lawsuit under ERISA?

ERISA does not provide a statute of limitations. Usually, the plan’s insurance policy has a provision which specifies when a suit can be brought.

ERISA petitioners whose ERISA life insurance claims have been denied must exhaust the mandatory administrative review process before bringing a court action for judicial review.

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