Portable coverage is an insurance policy that can be continued with the same level and format of coverage when the insured changes employers or retires. When an employee has group life insurance provided to him by his employer, that plan is in force for as long as the employee is actively working. When an employee is terminated, retires or changes employment, the group coverage may no longer be available to him. In such cases, the insured will ask to port his coverage or, in other words, change it to an individual plan providing the same protections.
When an employee decides to port his coverage, he will be asked to complete and sign a portability application. A portability application differs from a regular life insurance application in that it may ask very few health questions. In some cases, it does not contain any health questions at all and may confuse the insured regarding the coverage it guarantees. What many applicants are unaware of is the fact that portability coverage, just like basic life insurance, may be contested by the insurance company if it was not in effect for two years prior to the insured’s death. If it is contested, the insurance company has a right to deny coverage and rescind the policy if there was a material misrepresentation on the portability application. Since very few portability applications ask health questions, you may be confused as to how the insured made a misrepresentation if she did not answer any health questions!
What Is Material Misrepresentation on Portability Application?
Many portable applications have a sentence which reads: “I guarantee I do not have a serious health condition which materially affects my life expectancy.” By signing it, an applicant makes a representation which may later serve as the basis for denial of benefits. If an insured dies within the first two years of signing such an application, the insurer may deny benefits if it finds out through medical records search that the insured did, in fact, have a health condition which affected the life expectancy.
Such outcome seems unfair, especially when the paragraph describing representations is in fine print. Many of our clients feel cheated when their claim is denied after the death of a loved one. At Kadetskaya Law Firm, we are prepared to fight on behalf on beneficiaries whose claims have been wrongfully denied by insurance companies. We know how to hold insurance companies accountable for the ambiguous language in their polices and the unfair tactics they employ in denying claims. We obtain favorable results in court and in out-of-court settlements.
If your loved one’s portable coverage application was approved, but then after the death the insurer refused to pay your claim, call Kadetskaya Law Firm for help. We have helped many people recover life insurance proceeds after a wrongful denial of benefits under portability coverage.
No Legal Fees Unless We Win Your Case!
Our attorneys work on a contingent fee basis. It means that we do not charge legal fees unless we collect the life insurance proceeds for you. Only then will we charge a reasonable legal fee. We take pride in offering competitive contingent fee structures and will work with you to ensure you are comfortable with the fee. If your claim has been denied or delayed, call our life insurance lawyers for help. We have the experience you can trust.