When Brighthouse Financial denied a $220,000 life insurance claim, citing alleged misrepresentations in the application, the beneficiary was left devastated. The insurer claimed the insured had misrepresented both immigration status and medical history, and attempted to void the policy. However, after our law firm got involved, we conducted a forensic review of the application, policy file, and underwriting notes. Our attorneys uncovered that Brighthouse had failed to conduct a reasonable investigation and had overlooked key documentation. We aggressively challenged the basis of the denial and succeeded in securing the full policy payout for our client. If you need help with a life insurance claim denial in Tennessee call us.
Why Insurance Companies Deny Claims Over Immigration Misstatements
One common reason insurers deny life insurance claims is due to incorrect or omitted immigration status during the application process. For example, in our Brighthouse case, the insured was accused of falsely identifying as a permanent resident when, in fact, their documentation was still pending. While insurers are allowed to evaluate risk based on legal residency, they cannot use this information unfairly or inconsistently. Many insurers continue underwriting and issue policies even after identifying discrepancies in immigration documentation only to use that same issue to justify a denial later.
Insurers argue that immigration status is a “material” fact affecting insurability. Yet we frequently find that companies fail to perform due diligence at the time of application. If they overlook issues and approve the policy anyway, courts may find they waived their right to contest it later. This is especially true if the insured paid premiums faithfully and the immigration issue had no relation to the cause of death.
Example:
In another recent case, an insurer tried to void a $300,000 policy when it discovered the insured had overstayed a student visa. We demonstrated that the company had verified the social security number and issued the policy knowingly, rendering their denial argument legally defective. That case also resulted in a full payout.
The Trap of Minor Medical Omissions in Life Insurance Applications
Another common reason for denial is the omission of seemingly minor medical treatments or diagnoses. In the Brighthouse case, the insurer claimed that the insured failed to disclose visits to a neurologist for headaches. While the insured had never been diagnosed with a major condition, the insurer retroactively argued that these appointments should have triggered disclosure of a more serious underlying issue.
Many applicants believe they only need to disclose major conditions or surgeries. But insurers often scrutinize every detail during the two-year contestability period, looking for any inconsistency to justify rescission. The omission of visits for migraines, allergy treatments, or even counseling can lead to accusations of fraud, even if those conditions had nothing to do with the insured’s death.
Example:
In a prior case we handled, a $150,000 claim was denied because the insured failed to mention treatment for mild asthma. We proved that the insurer had access to medical records before issuing the policy and failed to follow up on clear red flags. The denial was reversed on waiver and bad faith grounds.
Contesting Misrepresentation Denials Requires Experienced Legal Help
The successful resolution of the $220,000 Brighthouse Financial claim shows how life insurers often misuse the misrepresentation doctrine. Companies like Brighthouse may deny claims based on technicalities such as citizenship confusion or undisclosed doctor visits without considering whether the alleged misstatement was truly material to the policy decision.
In our case, we demonstrated:
The insured’s immigration documentation was not concealed and had been verifiable.
The medical appointments were routine and non-material.
The insurer failed to obtain medical records or clarify immigration status during underwriting.
Once we presented these facts and applied the legal principles of waiver, materiality, and bad faith, the insurer reversed its position and paid the full amount.
If Your Claim Was Denied for Misrepresentation, You Still Have Options
Being told that a life insurance claim is “void due to fraud” can be terrifying but it is not always the final word. Our attorneys regularly challenge life insurance denials involving:
Alleged false answers about immigration or residency status
Omitted doctor visits, prescriptions, or mental health treatment
Ambiguous or misleading questions on application forms
Insurers failing to verify information they could have easily obtained
We fight aggressively to prove that the insured acted in good faith and that the insurer is misusing the contestability clause. If your life insurance claim has been denied for any reason, particularly under the claim of misrepresentation, contact our legal team today to evaluate your options.