Denied Liberty Mutual Life Insurance Claim Due to an Application Error? Here’s Why You May Still Get Paid. When a loved one passes away, beneficiaries expect the life insurance company to honor the policy and provide the promised payout. Unfortunately, that doesn’t always happen. One of the most common reasons for denial is an alleged error or omission on the original application. Liberty Mutual, like many insurers, may use even minor mistakes to avoid paying what is owed. But a denial does not mean the end of the road—especially if the mistake was immaterial.
Our firm recently helped a client recover a $50,000 life insurance benefit from Liberty Mutual that had been denied due to a small error on the deceased’s application. The insurer claimed that the inaccuracy voided the policy. However, we demonstrated that the mistake had no effect on the issuance or terms of the policy, and we compelled a full payout. This case serves as a strong reminder that many denials based on technicalities can be reversed with the right legal approach.
Why Insurance Companies Deny Claims Over Application Errors
When someone applies for life insurance, they are expected to answer questions truthfully and completely. This includes disclosing health conditions, lifestyle habits, income, occupation, and even criminal or legal history. If the insured later dies—especially within the policy’s contestability period—insurers often revisit the application, looking for any discrepancies that could justify a denial.
The contestability period, usually the first two years of coverage, allows insurers to investigate the application for material misrepresentations. If they find any, they may try to rescind the policy entirely. However, the burden is on the insurer to prove that the error was material—meaning it influenced their decision to issue or price the policy. Innocent mistakes, irrelevant omissions, or errors that had no impact on the cause of death should not result in denial. If you need legal help for life insurance disputes in Ohio we are here.
Common Errors That Trigger Denials—Even If They Shouldn’t
Some of the most frequent application mistakes used as grounds for denial include:
Minor typos in personal details, such as name or date of birth
Misreporting height, weight, or body mass index (BMI)
Forgetting to disclose past surgeries, treatments, or resolved conditions
Underreporting tobacco, alcohol, or marijuana use
Omitting old or irrelevant mental health diagnoses
Failing to mention past DUI convictions or reckless driving tickets
Not disclosing foreign travel plans or time spent living abroad
Forgetting to report minor legal issues, like past arrests or civil lawsuits
Misrepresenting job duties, especially in hazardous professions
Providing outdated information on financial or insurance history
While these issues may seem minor, insurance companies frequently seize upon them to void a claim—especially when the death occurs early in the policy or when the benefit amount is significant. The reality is that many of these errors have little or no bearing on the insurer’s actual underwriting decision. That’s where legal intervention makes all the difference.
The Legal Standard: What Is a “Material” Misrepresentation?
Not every mistake on a life insurance application is grounds for denial. Under most state laws, a misstatement must be both false and material to justify rescinding the policy. “Material” means that the insurer would have taken different action—such as charging a higher premium, imposing different terms, or declining coverage altogether—had they known the truth.
For example, if someone fails to mention a minor surgery from years ago that has no connection to the cause of death, that omission likely isn’t material. Similarly, forgetting to note part-time skydiving as a hobby may be irrelevant if the insured died of natural causes. Insurers must prove that the error directly impacted their underwriting decision. If they can’t, the denial may be overturned.
How Our Attorneys Reverse Denied Claims Like These
When a client comes to us with a denial based on an alleged application error, we begin by requesting the full claims file, including the application, underwriting notes, correspondence, and internal review documents. We examine whether the error was actually material and whether the insurer followed the law in denying the claim.
In many cases, we find that the insurance company denied the claim without sufficient proof. We present medical records, policy documents, and legal arguments showing that the insurer would have issued the policy regardless of the mistake. If the error had nothing to do with the cause of death—or was the result of poor communication or misunderstanding—we demand that the insurer reconsider. In some cases, we even pursue claims for bad faith or interest penalties for delays.
Contesting a Denial Doesn’t Always Mean a Lawsuit
Contrary to what many people believe, challenging a denied life insurance claim does not always require going to court. Many denials can be resolved through a formal appeal or negotiated settlement. Insurers often reverse their position once confronted with an experienced attorney who knows how to apply pressure, cite state laws, and expose weak reasoning.
At our firm, we focus exclusively on life insurance litigation. We know how Liberty Mutual and other insurers operate, and we use that knowledge to hold them accountable. Whether the denial involved a $50,000 claim or a multi-million-dollar policy, we fight for beneficiaries who have been unfairly denied.
Don’t Let a Simple Mistake Rob You of What You’re Owed
Life insurance companies don’t deny claims by accident. When they point to a “technicality,” it’s usually a calculated move to avoid paying. But that doesn’t mean their decision is legally valid. Many beneficiaries give up too soon—thinking they have no options—when in fact, the denial could be reversed with legal help.
If your Liberty Mutual life insurance claim was denied due to a mistake on the application, you may still be entitled to the full benefit. Don’t walk away without talking to an experienced life insurance attorney. In many cases, we can resolve disputes quickly and without litigation—and if a lawsuit is necessary, we’re ready to go the distance.
Frequently Asked Questions About Denied Life Insurance Claims Due to Application Errors
Can an insurer deny a life insurance claim because of a mistake on the application?
Yes, but only if the mistake is considered material. The insurer must prove that the error would have changed their decision to issue the policy or affected the terms or cost of coverage. Minor or irrelevant errors generally don’t justify denial.
What is the contestability period in a life insurance policy?
The contestability period is typically the first two years after a life insurance policy is issued. During this time, insurers can investigate the application and deny claims based on misrepresentations or omissions. After the period ends, the policy becomes “incontestable” except in cases of outright fraud.
What kinds of mistakes do insurers commonly cite to deny claims?
Common errors include misreported height or weight, undisclosed medical conditions, forgotten mental health treatment, failure to mention DUI convictions, inaccurate job descriptions, and omissions of past drug use or criminal history.
Is every misstatement on an application grounds for denial?
No. To justify a denial, the insurer must show the misstatement was material and intentional. Innocent errors or facts unrelated to the cause of death are often not enough to void coverage.
What if the insured died from something unrelated to the application error?
That’s a key factor. If the error had nothing to do with the cause of death—such as omitting a back surgery when the person died in a car accident—many courts will rule that the exclusion doesn’t apply.
Can a denied claim be reversed without going to court?
Yes. Many denials are reversed through administrative appeals or legal correspondence. A strong legal argument can compel the insurer to settle the claim without litigation.
What if the insurer delayed the investigation beyond the contestability period?
In some cases, a delay by the insurer can be treated as a waiver of their right to contest. If they knew about the issue but failed to act promptly, legal remedies may be available.
Does Liberty Mutual often deny claims for technical reasons?
Like many large insurers, Liberty Mutual may use policy language and application reviews to avoid payouts. However, many of these denials can be challenged and overturned with legal help.
Is there a time limit to appeal a denied life insurance claim?
Yes. Most policies and state laws impose deadlines for appealing or filing a lawsuit after a denial. It’s important to act quickly and consult an attorney as soon as you receive a denial letter.
What should I do if my claim was denied due to an application error?
Contact a life insurance attorney right away. They can evaluate the denial, obtain relevant documents, and determine whether the error was material. Many beneficiaries who are initially denied end up recovering the full amount with legal representation.