Life Insurance policies are not always clear-cut as one might think. Dealing with such things as stipulations, contractual requirements, and possible claim denials can be extremely off-putting. Compounding these issues are the fact that it always feels like insurance companies will always attempt or manufacture any sort of reason to be able to deny the life insurance claim. They can range from understandable to the absolute ridiculous. One such understandable, yet murky reason, is the felony exclusion reason for denial.
What is Felony Exclusion?
The Felony Exclusion reason for denial stems from the policy holder dying in the event of an illegal activity. Mind you, this does not include past histories of felony charges, or misdemeanors. This is because many of those issues would be ironed out, or outright denied when the policyholder first applies for the policy.
The Felony Exclusion is specifically tied to the activity that occurred and precursored the death. This reason for denial is most often seen in AD&D claims, or Accident Death & Dismemberment claims, as the cause of death becomes the primary focus of the case.
How does it become a hassle?
The main reason that a felony exclusion denial can become a hassle is due to the fact that the events and actions that some insurance companies consider to be under that banner. As much as we wish that insurance companies to be considerate and understanding, many companies only see insured as another way to make a bit more money by not paying the claim out. As such, they attempt to exploit any possible avenue available to them that can change the cause of death from “Accidental” to “intentional” of some sort.
The way they may do this is to bring into question what was going on when the insured died. If, for instance, the insured had died while being chased by police, or had been in a stolen vehicle, the insurance company could use that as grounds for the felony exclusion reason. But, they can also do so if they find illegal substances in the tox reports from the police. If the blood alcohol level is even remotely close to any level, insurance companies can and will attempt to use it as as leverage point.
How do I challenge this kind of Denial?
Luckily, there are plenty of tools and advantages that can be afforded to you if you plan to challenge a denial based on the felony exclusion. To start, make sure to collect all written reports, as well as a full transcript of the policy itself. This is to make sure you do not have any problems with differences in writing, when taking it to a legal court.
Next, hire an experienced life insurance claims denial lawyer or attorney. Having someone that is extremely understanding and is used to dealing with insurance companies on these grounds will make sure that you don’t get caught in a legal loophole. They can help to safeguard you against the possibility of an insurance company attempting to completely disregard you, and dismissing your case. Here at our offices, we know what it is like to be on the receiving end of the denial. We want to make sure that you don’t have to go through it for too long, and that you get the appropriate benefits.