Our legal team recently secured the full $50,000 death benefit for a client after Globe Life denied their life insurance claim based on an undisclosed eligibility requirement. The insurer claimed that the policy never should have been issued, pointing to internal underwriting rules that were never shared with the applicant or listed in the policy. This is a tactic we see often insurers denying valid claims by invoking vague or hidden standards not contained in the actual contract. In this case, our attorneys challenged Globe Life’s justification and forced a reversal. The beneficiary received the full payout, plus interest. If you need a Rhode Island interpleader lawsuit guidance attorney call us.
When Insurers Use Unwritten Rules to Deny Valid Claims
Life insurance is a contract. If the policy doesn’t clearly spell out a limitation, condition, or eligibility rule, it generally cannot be enforced. However, we routinely see insurers attempt to apply behind-the-scenes rules that the policyholder had no way of knowing. These hidden requirements are often buried in internal manuals or underwriting protocols but never included in the contract itself. After the insured passes away, the company reviews the file and decides the policy should not have been issued at all. Then they use that rationale to rescind the policy and deny the claim.
In the Globe Life case, the company claimed the insured had failed to meet a “health qualification” based on information that was never requested during the simplified application process. There was no health question or exam involved yet the insurer tried to retroactively impose an unwritten screening criterion. That’s not how contract law works. We argued that issuing the policy without disclosure of these conditions constituted a waiver and that the denial violated basic principles of good faith. Our legal challenge succeeded, and Globe Life paid the full amount.
Real-World Examples of Hidden Rules Leading to Denials
This is not an isolated issue. Here are examples from other cases we’ve successfully resolved where insurers tried to apply unwritten or undisclosed rules to deny claims:
Unpublished Waiting Periods: A client’s $75,000 claim was denied because the insurer claimed there was a 12-month waiting period for natural death, even though the policy only referenced a contestability clause. We demonstrated that the clause did not apply and secured payment in full.
Retroactive Underwriting Standards: In a $100,000 case, the insurer tried to deny the claim by citing updated underwriting guidelines that were introduced after the policy had been issued. We proved that applying those standards retroactively was unlawful.
Medical Tests Never Disclosed: A $60,000 claim was initially denied after the insurer claimed the insured had failed a medical exam that had never been part of the application process. We exposed the misrepresentation and reversed the denial.
Vague Eligibility Language: A client was denied benefits based on a loosely worded clause requiring that the insured be in “acceptable health.” No definition was given, and no specific condition was cited. We argued that the language was too ambiguous to be enforceable and recovered the full amount.
These tactics rely on a fundamental imbalance of power. The insurer assumes the average policyholder or beneficiary will not challenge their decision especially when the denial is dressed up in vague legal terms. But with legal representation, these denials can often be overturned.
Holding Life Insurers Accountable to the Written Policy
In any life insurance dispute, the starting point is the policy itself. If the insurer can’t point to a specific term in the contract to support the denial, they’re likely on shaky ground. Courts routinely reject attempts to enforce internal rules or unwritten standards after the fact. Insurers who deny claims based on hidden eligibility criteria may be in breach of contract and potentially liable for bad faith damages.
In the Globe Life case, our attorneys emphasized three key points:
The policy contained no language requiring the alleged eligibility condition
The insurer failed to investigate or clarify the issue before issuing the policy
The denial was based entirely on post-issuance internal guidelines
We presented these facts alongside applicable case law and forced a reversal. The client received the full $50,000 plus accrued interest. No lawsuit was necessary.
Legal Representation Makes a Measurable Difference
Insurers count on beneficiaries accepting a denial without question. But when denials are based on improper or hidden requirements, they can often be challenged and reversed. Our firm focuses exclusively on denied life insurance claims. We know how insurers operate, we know the loopholes they exploit, and we know how to make them pay.
If your life insurance claim was denied due to some vague eligibility issue, vague policy language, or a surprise “requirement” you never knew existed, contact us. You may be entitled to the full benefit and more.