Our firm concentrates our practice in contesting the wrongful denial of life insurance claims. Because of this focus, we have a deeper understanding of the life insurance industry than most. We also view insurers with more skepticism than the average consumer.
Many people think of life insurance companies as benevolent institutions—almost like charitable organizations. After all, when life insurance works the way it should, it provides financial stability for grieving families. Policyholders often pay relatively modest monthly premiums, yet their loved ones can receive hundreds of thousands, if not millions, in return.
To the average person, that’s a great deal. But we know better. If you need Michigan interpleader lawsuit guidance call us.
Why Life Insurance Companies Deny Claims
Life insurance companies are not in the business of generosity—they are for-profit entities. They don’t maximize profits by paying out claims freely. Instead, they collect premiums month after month and look for any excuse to deny a claim when the time comes.
One tactic insurers often use is stretching or manipulating policy language to avoid a payout. And they do it knowing that many beneficiaries are emotionally vulnerable after losing a loved one. When someone is grieving, navigating the fine print of an insurance contract isn’t easy. Unfortunately, insurers bank on that confusion.
Case Study: A $2 Million Claim Denied Over "Inherently Dangerous" Living
Let us share a real-life case that illustrates how insurers misuse vague policy exclusions to avoid paying valid claims. Nancy was a high-powered attorney and a partner at a prominent law firm in the Pacific Northwest. Her employer-provided life insurance policy was valued at $2,000,000, and she named her husband, Paul, as her sole beneficiary.
As a contract lawyer, Nancy completed her policy application carefully, fully disclosing all relevant information, including her home address. That address just happened to be a floating home—a common and perfectly legal residence style in her region. The insurer asked no questions and issued the policy without hesitation.
Years later, Nancy tragically passed away from a brain aneurism. Paul filed a routine claim expecting no issues. Instead, he received a shocking denial letter. According to the insurance company, Nancy had died while engaging in an "inherently dangerous activity"—living in a floating home—and thus the policy exclusion applied.
The Legal Fight Back
Paul knew something was wrong. He contacted one of Nancy’s former legal colleagues, who specialized in life insurance claim denials. The lawyer requested the full policy file and confirmed that Nancy had disclosed her address on the original application.
Had the insurer genuinely believed that floating homes were dangerous, it could have denied her application or increased her premiums. It did neither. Only after Nancy's death did the insurer manufacture this rationale.
The attorney filed suit and was preparing for trial when the insurance company suddenly agreed to settle the claim for the full $2 million. The insurer clearly wanted to avoid a public courtroom loss—and the possibility of punitive damages.
Lessons Learned
This case illustrates a disturbing truth: insurers often invoke vague or broadly defined policy exclusions to avoid paying death benefits. The “inherently dangerous activity” exclusion is particularly ripe for abuse. Some policies list specific activities like skydiving or motorcycle racing. Others use vague language like "any activity that significantly increases the risk of injury or death," leaving interpretation wide open.
When the exclusion is vague, insurers can—and do—label virtually any activity as dangerous after the fact. That’s exactly what happened in Nancy’s case. Without experienced legal help, Paul may have never received the payout Nancy intended for him.
Don't Face Insurers Alone
If you’ve had a life insurance claim denied for vague or questionable reasons, don’t assume the insurer is correct. We’ve helped many clients overturn unjust denials—often without ever going to trial.
We offer a free case evaluation. If we believe you have a strong case, we’ll take it on a contingency basis, meaning you pay nothing unless we recover money for you.
Let us help you get the benefits your loved one meant for you to have.