A Prudential life insurance claim for $400,00 was denied due to a misrepresentation with respect to employment income, and we were able to get the full policy amount for our client.
Insurance companies are in business to make a profit. It is not in their interest to pay out on large life insurance policies without first exhausting every legal avenue for denial. You need a life insurance lawyer. One of the most common tactics life insurance companies use to deny your claim is accusing you, or your loved ones, of making a "material misrepresentation" on the application for the insurance policy itself.
This tactic is commonly used by the insurer if your loved one passes away during what is called the "contestability period," which is the period of time during which a life insurance company is supposed to be reviewing your application to decide if they will provide life insurance coverage to you.
Commonly, insurance companies will base these accusations upon misrepresentations relating to:
- Employment history
- Tobacco use
- Alcohol consumption
- Other life insurance policies
- Dangerous hobbies or traits
When a person dies while they are still within the contestability period, life insurance companies almost always launch an investigation to determine if the decedent made any material misrepresentations on his or her life insurance application. If the life insurance company believes that they have found any material misrepresentation, they will deny the life insurance claim made by the surviving loved ones. It can take the help of an experienced insurance lawyer to assert your rights and protect your interests in these matters.
Other common denial tactics used by insurance companies to deny life insurance claims include: denials based on a claimant's failure to disclose required information in the application process, failure to strictly adhere to the claim filing process, allegations of fraud or misrepresentation, policy construction and interpretation issues, effective date of coverage disputes, disputed cause of death, and cancellation of a policy because of non-payment of premiums or other premium disputes.