Life insurance companies sometimes deny claims by pointing to vague exclusions like “inherently dangerous activities.” But not every policy contains such an exclusion. And even when one does, it must be applied correctly and honestly.
Many denials in this category are not based on what the policy actually says. They are based on what the insurance company hopes the beneficiary will assume.
If your claim was denied because the insurer says the death involved a dangerous activity such as scuba diving, skydiving, climbing, or another adventure sport, there is a very real chance the denial is wrong.
Why Insurance Companies Get Away With These Denials
Most people assume all life insurance policies are basically the same.
They think:
Certain activities are always excluded
The insurer’s word is final
If the company says something is not covered, it must be true
None of that is correct.
Life insurance policies vary widely. Some exclude risky activities. Some cover them. Some offer optional riders or enhanced coverage for an extra premium.
Insurance companies know most beneficiaries will not read the policy or understand it. They also know that grief makes people less likely to fight.
So they often send denial letters that sound authoritative and final, even when they are wrong.
A Real Case: A Scuba Diving Death and a False Denial
Morgan was a 38 year old interpreter who loved adventure. She spent her free time hiking, climbing, and mountain biking with her partner, Tim.
Through her employer, she had a $350,000 life insurance policy and named Tim as the beneficiary.
Before buying the policy, she had been careful. She knew she lived an active lifestyle and paid extra for coverage that included adventure and extreme sports.
On a trip to Hawaii, Morgan and Tim went scuba diving off the coast of Maui. It was their first time, and they completed certification training and went with a supervised charter.
During the dive, Morgan suffered an equipment failure and lost her oxygen supply at depth. Despite rescue efforts, she did not survive.
Tim submitted a life insurance claim.
The insurance company denied it.
The letter said scuba diving was an “inherently dangerous activity” and therefore excluded.
Tim assumed that was the end of it.
How One Lawyer Exposed the Truth
Tim’s brother David, who was a lawyer, happened to be visiting when the denial letter arrived. He did not practice insurance law, but he knew enough to be suspicious.
He contacted a colleague who focuses on denied life insurance claims and asked him to review the policy.
When the policy was examined, the truth came out.
Morgan’s policy did not exclude dangerous activities.
In fact, she had paid extra for a version of the policy that specifically covered adventure sports.
The denial letter was simply wrong.
How the Denial Was Reversed
The attorney sent a formal legal demand to the insurance company explaining:
The policy did not contain the exclusion they were relying on
The insured had paid extra for enhanced coverage
The denial was a breach of contract
The company was acting in bad faith by misrepresenting the policy terms
He made it clear that a lawsuit would follow, including a bad faith claim.
Within days, the insurance company reversed its decision and paid the full $350,000, plus interest.
Why This Happens So Often
Insurance companies know that:
Most beneficiaries will not read the policy
Most people will assume the denial is final
Many families are too overwhelmed to fight
Every wrongful denial that goes unchallenged is pure profit for the insurer.
Some companies use generic denial templates and hope no one checks whether the cited exclusion is actually in the policy.
Denial Letters Are Not the Final Word
Insurance companies are legally required to act in good faith.
If they deny a claim based on:
An exclusion that does not exist
An exclusion that does not apply
Or a policy they did not bother to read correctly
They can be sued for more than just the policy amount.
In some cases, courts award additional damages for bad faith.
Why These Policies Are Often Misread
Many life insurance policies are customized:
Riders may add or remove exclusions
Higher premiums may buy broader coverage
Employer plans often have different rules than individual policies
The only thing that matters is what the actual contract says, not what the insurer claims it says.
If Your Claim Was Denied After a Diving or Adventure Accident
You should be especially suspicious if:
The denial relies on “dangerous activity” language
The letter is vague or generic
The insurer does not quote the exact policy language
You are not even sure the exclusion exists in your policy
These are classic signs of a wrongful denial.
Do Not Assume the Insurance Company Is Right
Our firm focuses exclusively on denied life insurance claims.
We routinely find that insurers deny claims based on exclusions that do not exist, do not apply, or were waived by riders or extra premiums.
We offer free consultations and handle these cases on a contingency basis. You do not pay anything unless we recover money for you.
If your loved one died in a diving accident or any other so called “dangerous activity” and the claim was denied, contact us. There is a very real chance the insurance company is wrong.