Portable coverage is an insurance term that refers to an insurance policy that can be continued with the same level and format of coverage when the insured changes employers or retires. When employees have policies, tthose plans are active as long as they are employed. When an employee stops working, retires or changes employment, the group coverage may no longer be available to him. In such cases, the insured will ask to port his coverage or, in other words, change it to an individual plan providing the same protections.
Read about fighting life insurance beneficiary
When an employee decides to port his coverage, he will be asked to complete and sign a portable application. Such an application is very similar to a regular life insurance application. In some cases, it does not contain any health questions and may confuse the insured regarding the coverage it guarantees. What is important to know is that a portability coverage application is similar to a basic life insurance application in that it may be contested by the insurance company if it was not in effect for 2 years from the date of issue to the insured's death.
This all sounds confusing and unfair. Many of our clients feel they were cheated by large insurance companies when the life insurance benefits were denied to them after the death of a loved one. Our life insurance attorneys are prepared to fight on behalf on beneficiaries and against insurance companies. We obtain favorable results in court and in out-of-court settlements. Our life insurance attorneys know how to hold insurance companies accountable for the ambiguous language in the polices and the unfair tactics they employ in denying claims.
If your loved one's portable coverage was approved, but then after the death the insurer refused to pay your claim, call us for help. We have helped many people recover money after a wrongful denial of benefits under portability coverage. Our firm has had success 100% of the time handling these claims.
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.