We are happy to announce we just resolved a denied Banner Life insurance claim.
The amount of coverage an applicant is eligible for is often based on their income, and a higher income typically means a higher coverage amount. By lying about their income, an applicant may be able to obtain a policy with a higher coverage amount than they would otherwise be eligible for, which could result in the insurance company incurring a greater financial risk.
If an insurance company discovers that an applicant has lied about their income on their application, they may deny the claim or cancel the policy. This could be the case even if the misrepresentation has no bearing on the cause of death. Lying about income is considered a breach of the duty of good faith that an applicant owes to the insurer, and it may void the contract between the two parties.
When an applicant applies for life insurance, they are required to disclose any other life insurance policies they have in force. This is because insurance companies need to assess the total amount of risk they are taking on by issuing a policy. If an applicant has multiple life insurance policies in force, it could affect the amount of coverage they are eligible for and the premiums they should be charged.
If an applicant fails to disclose an existing policy and the insurance company discovers this after a claim is made, the insurer may deny the claim or reduce the payout amount. This is because the undisclosed policy represents additional financial risk that the insurer was not aware of when underwriting the policy.
Non-disclosure of another life insurance policy could also be considered fraud or misrepresentation, which could result in the insurer voiding the policy and refusing to pay any claims. This underscores the importance of providing accurate and complete information when applying for life insurance to avoid any issues down the line.