One of the most crucial exclusions is the felony exclusion, which could potentially void your policy or lead to a denied claim. Understanding how the felony exclusion rule works and when it may apply can help protect your beneficiaries from unexpected setbacks during a difficult time.
What Is the Felony Exclusion Rule in Life Insurance?
The felony exclusion rule is a common clause found in most life insurance policies. It is designed to protect insurance companies from fraud and prevent payouts in situations where the insured individual dies while committing a felony. The rationale behind this rule is that it helps avoid the risk of fraudulent claims, where someone might intentionally engage in dangerous or illegal activities with the intent to collect life insurance benefits. For instance, if an individual takes out a life insurance policy and then knowingly engages in a criminal activity that leads to their death, their beneficiaries may not be entitled to the payout.
This rule also applies in cases where someone purchases a life insurance policy on a person known to be involved in criminal activities, which can increase the risk of a fraudulent payout.
How the Felony Exclusion Rule Can Affect Your Life Insurance Claim
If a person’s death is suspected to be the result of committing a felony, the insurance company may delay the payout of the claim to investigate the circumstances surrounding the death. The provider will want to determine whether the insured person was engaged in illegal or criminal activity at the time of their death. If the insurance company determines that the death was related to felony activity, they are within their rights to deny the life insurance claim.
While the felony exclusion is valid in many cases, it is not always applied correctly. Insurance providers may sometimes wrongly assume that a death is connected to a felony without proper investigation or evidence. This can lead to wrongful denials, causing unnecessary financial distress for the beneficiaries.
When the Felony Exclusion Rule May Be Wrongfully Applied
It’s important to note that not every life insurance claim denial based on the felony exclusion is justified. In some cases, insurance companies may use the exclusion rule as a way to avoid paying out claims, particularly if they feel that denying the claim will save them money. If you’ve had a claim denied under the felony exclusion rule, it’s essential to review the circumstances of the death and gather all relevant evidence.
Insurance providers may incorrectly deny claims based on faulty assumptions or incomplete investigations. If the insured person wasn’t committing a felony at the time of their death, or if the insurance company failed to follow the proper procedures, the denial could be wrongful. If you have New York life insurance claim issues call today.
Fighting a Wrongful Denial Under the Felony Exclusion Rule
If your life insurance claim has been denied due to the felony exclusion rule, you have options. In many cases, working with an experienced life insurance lawyer can help you navigate the legal complexities of fighting a wrongful denial. A skilled attorney can help challenge the insurance company’s decision, provide evidence that counters their assumptions, and potentially secure the payout your loved ones are entitled to.
Our team of legal professionals has extensive experience handling felony exclusion cases. We understand how devastating a claim denial can be, especially when it affects your family’s future. If you believe that your claim was wrongfully denied due to the felony exclusion, don’t hesitate to seek legal assistance. We are here to help you fight back and ensure that your policyholder rights are protected.