Life Insurance Lawyer Birmingham Alabama

We will fight your denied life insurance claim, and win! You need a life insurance lawyer Alabama!

Life insurance claims may be denied for various reasons, and understanding these reasons is crucial for policyholders. Firstly, one common cause for denial is material misrepresentation or non-disclosure during the application process. If the insured failed to disclose pertinent information such as pre-existing medical conditions, risky behaviors like smoking, or hazardous hobbies, the insurer may reject the claim. Such omissions can be seen as a breach of the policy's terms, which require full disclosure for accurate risk assessment.

Secondly, policy lapses or non-payment of premiums can lead to claim denials. If the insured fails to pay premiums on time or allows the policy to lapse due to non-payment, the coverage becomes void, and any claims made during the period of lapse would be denied. It's essential for policyholders to maintain their premium payments to keep the policy in force and ensure their beneficiaries receive the intended benefits upon their passing.

Thirdly, death under certain circumstances excluded in the policy can result in claim denial. For instance, if the insured dies due to engaging in prohibited activities specified in the policy, such as participating in extreme sports not covered by the policy, the insurer might reject the claim. Similarly, death resulting from acts of war or suicide within a specified timeframe after policy issuance may also lead to denial, as these events are typically excluded from coverage.

Fourthly, if the cause of death is under investigation or suspicious circumstances surround the demise, the insurance company may withhold payment until a thorough investigation is conducted. If the investigation reveals evidence of fraud, foul play, or intentional self-inflicted harm, the claim may be denied. Insurers have a duty to investigate claims thoroughly to prevent fraudulent payouts and ensure the integrity of the insurance system.

Finally, if the insured dies within the contestability period, typically the first two years of the policy, the insurer reserves the right to investigate the accuracy of the information provided in the application. If discrepancies or inaccuracies are found during this period, the claim may be denied. Contestability allows insurers to verify the information provided by the policyholder and detect any potential fraud or misrepresentation that occurred during the application process. Therefore, it's vital for policyholders to provide truthful and accurate information to avoid claim denial during this period.

2023-2024 Birmingham Alabama Life Insurance Claims Recently Resolved

  • AIG material misrepresentation $43,000.00
  • Prudential life sickness exclusion $51,540.00
  • Birmingham Alabama AD&D claim denied $25,000.00
  • Globe Life felony exclusion $25,000.00
  • American Family policy lapse $43,000.00
  • Genworth poisoning death $59,500.00
  • Accidental Death & Dismemberment $250,000.00
  • Drug oxycontin denial $106,000.00
  • United World autoerotic asphyxiation death claim $101,000.00
  • Unum act of war exclusion $202,000.00
  • Birmingham Alabama denied life insurance claim $8,000.00
  • Military Life self-inflicted injury exclusion $11,000.00
  • American Equity Investment lapsed policy $55,000.00
  • Zander insurance wrong age on application $32,000.00
  • Philadelphia American Life exclusions $40,000.00
  • SBI Life intoxication exclusion accident $15,000.00
  • Felony commission of crime $9,000.00

Interpleader Lawyer Birmingham Alabama

An interpleader in the context of a denied life insurance claim involving a spouse and ex-spouse could occur when the deceased policyholder failed to update their beneficiary designation after a divorce. For instance, let's consider a scenario where the insured individual named their spouse as the primary beneficiary on their life insurance policy during their marriage. However, following a divorce, the insured remarried but did not update the beneficiary designation on the policy. Upon the insured's death, the insurance company receives claims from both the current spouse and the ex-spouse, each asserting their entitlement to the policy proceeds.

In this situation, faced with conflicting claims, the insurance company may initiate an interpleader action. By doing so, the insurer seeks guidance from the court to determine the rightful beneficiary of the life insurance proceeds. In the interpleader action, the insurance company deposits the policy proceeds with the court and names both the current spouse and the ex-spouse as defendants. Both parties are then given the opportunity to present their respective cases, providing evidence such as divorce decrees, beneficiary designation forms, and any other relevant documentation.

The court, after considering the evidence presented by both parties, will make a determination regarding the rightful beneficiary of the life insurance proceeds. This process ensures that the insurance company is relieved of any liability and that the proceeds are distributed in accordance with the court's decision. An interpleader action in such circumstances provides a fair and impartial resolution to disputes over life insurance benefits, particularly in cases involving complex familial relationships and changes in beneficiary status due to events like divorce.

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