Life insurance companies are expected to pay valid claims within a reasonable time. When a beneficiary submits a complete claim and the insurer does nothing for months or even years, the delay itself may violate the policy and state insurance law. These cases often involve no formal denial at all. Instead, the insurer keeps the claim in limbo, requesting repetitive documents, citing vague investigations, or simply failing to act.
A prolonged delay is not the same thing as a denial, but it can be just as damaging financially. In many cases, the delay is a calculated tactic designed to pressure beneficiaries into giving up or accepting less than the full benefit.
What Counts as an Unreasonable Delay
Most life insurance policies do not allow open ended investigations. Once a claim is submitted with a death certificate and required forms, the insurer must either pay the claim or issue a written denial within a reasonable period of time. What is considered reasonable depends on the circumstances, but routine claims do not justify extended inactivity.
Common examples of unreasonable delay include:
• Months of silence after claim submission
• Repeated requests for documents already provided
• Ongoing investigations with no explanation
• Waiting indefinitely for medical records that are not relevant
• Refusing to make a coverage decision
Insurers often label these delays as routine review, but courts frequently disagree when the delay serves no legitimate purpose.
Insurer Investigations Are Not Unlimited
Insurance companies often justify delays by claiming they are still investigating the claim. While insurers are entitled to investigate, that right is not unlimited. An investigation must be tied to a legitimate coverage issue. An insurer cannot delay payment simply to look for a reason to deny.
Examples of investigations that often cross the line include:
• Fishing expeditions into unrelated medical history
• Investigations continuing long after records are complete
• Delays based on speculative fraud concerns
• Reopening investigations without new information
When an insurer cannot articulate a specific policy based reason for the delay, the delay itself may become actionable.
State Law Often Requires Prompt Payment
Many states impose statutory deadlines for life insurance claim handling. These laws typically require insurers to either pay the claim or issue a written decision within a defined period after receiving proof of death. Failure to comply may expose the insurer to interest penalties, statutory damages, or bad faith liability.
Even in states without explicit deadlines, courts often rely on general unfair claims practices statutes. These laws prohibit insurers from failing to adopt reasonable standards for prompt claim handling.
A delay that violates state law can transform a simple claim into a bad faith case.
Delays Caused by Beneficiary Issues Are Often Overstated
Insurers frequently claim they cannot pay because of potential beneficiary issues, even when no competing claim has been filed. Merely speculating that someone else might come forward does not justify withholding payment indefinitely.
If the insurer truly believes there is a beneficiary conflict, it has tools available, including interpleader. What it cannot do is sit on the claim indefinitely while doing nothing.
What Beneficiaries Should Do During a Prolonged Delay
When a claim has been pending for an extended period with no decision, beneficiaries should begin documenting the delay. This includes saving correspondence, noting unanswered inquiries, and tracking how long the insurer has had complete documentation.
Key steps often include:
• Requesting a written status explanation
• Asking what specific policy issue is under review
• Demanding a coverage decision
• Requesting a copy of the claim file
• Consulting counsel before providing additional statements
Once an insurer is placed on notice that the delay is being challenged, behavior often changes quickly.
Delay Alone Can Be a Legal Violation
Importantly, a beneficiary does not need to prove the claim would have been denied improperly. A prolonged failure to pay or decide can itself violate insurance law. Courts recognize that delay deprives families of the very financial protection life insurance is meant to provide.
Many delayed claims resolve only after legal pressure is applied. Once counsel demands a decision and cites applicable law, insurers frequently pay without issuing a denial at all.
When Legal Help Becomes Necessary
If a life insurance claim has been pending for months with no clear explanation, legal review is warranted. Delay cases are fact driven and policy specific. An attorney can determine whether the insurer is violating the policy, state law, or both.
In many cases, beneficiaries recover not only the full death benefit but also interest and additional damages caused by the delay.
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