A client of ours was denied a $300,000 Unum life insurance claim due to an alcohol exclusion. We were able to get our client the full policy amount.
When an insurance company denies coverage, the beneficiaries may find themselves without any means of support.
Insurance companies operate to make a profit and one way they minimize expenses is by not paying claims. But the law requires insurance companies to have a valid reason for denials, which they frequently don't. You need a life insurance lawyer.
Reasons for the Claim Denial
Common reasons for denial of claims are that
- a material misrepresentation was made in the policy application, that
- coverage lapsed because of the failure to timely pay the premiums on the policy, and that
- he incident giving rise to a claim falls outside of the scope of coverage.
Bad Faith Life Insurance Denials
If a policyholder has been treated unfairly or in bad faith during the claims process, leading to the failure to pay a claim, there may be a bad faith claim against the insurance company. Bad faith may occur when the insurance company does the following:
Denies a claim
Requires unreasonable information from the insured
Makes repeated requests for information that unnecessarily prolongs the claims process
Fails to make a reasonable settlement offer within a reasonable period of time after liability has become clear
Refuses to pay claims without conducting a reasonable investigation
Compels an insured to commence litigation to collect amounts due under an insurance policy
Fails to affirm or deny a claim within a reasonable period of time
The Damages You May Be Entitled To
When there is a bad faith insurance denial, the policyholder is entitled to the amount due under the policy and may also be due any consequential damages suffered as a result of the denial. An example is a company that goes out of business after the coverage from a fire or other commercial policy is not paid after a loss occurs. In that case, a court may award not only the policy amount but also damages for the subsequent business loss.
In some instances, an award of punitive damages or attorney's fees may be awarded to a policyholder who has been subject to a bad faith insurance denial.
The death of a loved one brings grief, sorrow, and losses, including medical and funeral expenses. If your loved one died and the insurance company refused to pay you the death benefits under the decedent's life insurance policy, our life insurance attorneys can help. We are a team of experienced life insurance attorneys who have dedicated their time and energy to fighting big insurance companies for wrongfully denying life insurance claims.