Often, insurance companies use the most absurd excuses for denying life insurance claims. Thus, in a recent case, the widow of a man killed when he was shot in the back sued the life insurance company for refusing to pay a claim because the man had a pre-existing condition unrelated to the cause of his death. Her husband, who was killed by unknown assailants, had a life insurance policy with Settlers Life Insurance. According to the lawsuit filed by the widow, the carrier denied her claim because her husband had Hepatitis C.
The policy is not specific as to whether there is a difference as to the manner of death. Similarly, the policy is silent on whether a beneficiary will get paid if the insured had a pre-existing condition. The widow claimed in her lawsuit that the cause of death had nothing to do with any sort of pre-existing condition. An accidental death at the hand of a murder is totally different from dying of natural causes. Under the applicable law, the cause of death is not relevant.
Insurance companies have a two-year period to contest the information in a policyholder's application. If in that time, the company discovers the applicant did not tell the truth about his health, the company can void or rescind the policy even if the person has died. If your claim has been denied, you need a skilled life insurance attorney represent you in a case of bad faith insurance practice against the insurance company. Our life insurance attorneys are here to help you if your claim has been denied.