A denied life insurance claim is devastating, especially when the policyholder did everything right. In this case, a $101,200 claim issued by Haven Life was denied based on an alleged application issue. After a detailed legal challenge, the denial was overturned and the full death benefit was paid to the beneficiary.
This case highlights how modern insurers, including online and digitally underwritten carriers, sometimes rely on broad misrepresentation arguments that do not hold up under legal scrutiny.
Why Haven Life Denied the Claim
After the beneficiary submitted the claim, Haven Life issued a denial letter asserting that the policy should be rescinded due to a material misrepresentation on the application. The insurer alleged that certain information, had it been disclosed differently, would have affected underwriting.
This is a common tactic in claims involving policies issued through accelerated or algorithm based underwriting. Insurers often re examine application answers only after a death occurs, even when no red flags were raised during policy issuance.
What the Legal Review Revealed
A close review of the application, underwriting process, and medical records revealed several critical problems with the denial:
The alleged misrepresentation was not material to the risk assumed
The application questions were vague and open to reasonable interpretation
Haven Life issued the policy without requesting clarification or follow up
There was no evidence of intent to deceive
Under established life insurance law, an insurer must prove more than an inaccurate answer. It must show that the statement was material and that the insured knowingly misrepresented facts in a way that would have changed the underwriting decision. Haven Life could not meet that burden.
How the Denial Was Overturned
Once the legal challenge was initiated, we presented documentation showing that the insured answered the application questions honestly and consistently with available medical records. We also demonstrated that Haven Life had access to sufficient information at the time of issuance and chose to proceed with coverage anyway.
Faced with these facts, the insurer reversed its position. The denial was withdrawn, and the full $101,200 death benefit was paid to the beneficiary.
Lessons From This Haven Life Claim Dispute
This case illustrates several important points that apply to many denied life insurance claims:
Digital underwriting does not eliminate insurer responsibility
Ambiguous application questions are construed in favor of coverage
Post claim underwriting is closely scrutinized by courts
A denial letter is not the final word
Even insurers with streamlined online platforms must follow the same legal standards as traditional carriers. When they fail to do so, beneficiaries have the right to challenge the denial.
What to Do If Haven Life or Another Insurer Denies Your Claim
If your life insurance claim is denied, especially based on alleged misrepresentation, it is critical to act quickly and strategically. Many beneficiaries mistakenly accept denials at face value, not realizing that insurers often overreach.
A proper review focuses on:
The exact wording of the application questions
What information the insurer already had
Whether the alleged omission actually mattered
Whether the insurer followed required procedures
In many cases, denials are reversed once these issues are exposed.
Frequently Asked Questions
Can Haven Life deny a claim after issuing the policy online?
Yes, but only if it can prove a material and intentional misrepresentation. Issuing a policy without follow up weakens the insurer’s position.
Does a misstatement always void a life insurance policy?
No. Minor inaccuracies or reasonable interpretations are not enough. The insurer must show the information would have changed underwriting.
How long does it take to resolve a denied claim like this?
Resolution timelines vary. Some cases settle within weeks after legal involvement, while others require litigation.
Should I hire a lawyer if my claim was denied?
Yes. Life insurance denial cases are highly technical, and legal review often makes the difference between no recovery and full payment.