Our life insurance attorneys successfully recovered a $129,000 death benefit after the insurer attempted to void the policy based on alleged nondisclosure of a high risk medical condition. The insurance company claimed that the policy should never have been issued and therefore refused to pay the claim. After a detailed review of the application, underwriting file, and policy language, we challenged the insurer’s position and secured full payment for the beneficiary.
This case highlights one of the most common and aggressive tactics insurers use to deny life insurance claims. Rather than evaluating the claim on its merits, the insurer tries to retroactively void the policy by alleging that something was omitted or misstated during the application process.
What Does It Mean to Void a Life Insurance Policy?
When an insurer voids a life insurance policy, it treats the policy as if it never existed. This is far more severe than a standard claim denial. If a policy is voided, the insurer asserts it has no obligation to pay the death benefit at all and will often refund only the premiums paid.
Insurers usually attempt to void policies during the contestability period, which is typically the first two years after the policy is issued. During this time, they are permitted to investigate the application and look for alleged misstatements. However, the law places strict limits on when a policy can actually be voided.
Common Reasons Insurers Claim a Policy Is Void
Alleged Medical Nondisclosure
The most frequent basis for voiding a policy is an allegation that the insured failed to disclose a medical condition. Insurers often argue that had they known about the condition, the policy would not have been issued or would have been issued on different terms.
To void a policy on this basis, the insurer must generally prove all of the following:
The information was actually omitted or misstated
The omission was material to underwriting
The insurer relied on that omission when issuing the policy
The omission was not minor, irrelevant, or unrelated
In the Voya case, the insurer claimed a serious medical condition was not disclosed. Our review showed that the application questions were vague, the condition was not clearly asked about, and the underwriting file did not support rescission.
Application Ambiguity or Overbroad Questions
Many applications use broad or poorly worded medical questions. If a question is unclear, compound, or subject to multiple interpretations, an insurer cannot later void a policy based on its own preferred interpretation.
Courts consistently hold that ambiguities in application questions are construed against the insurer, not the policyholder.
Pre Existing Conditions and Cause of Death
Insurers often argue that a nondisclosed condition is grounds for voiding coverage when the insured later dies from a related cause. However, if the condition was not clearly asked about, not material, or not proven to affect underwriting, the policy may remain valid.
The insurer bears the burden of proof, not the beneficiary.
Lifestyle or Risk Factor Allegations
In addition to medical history, insurers sometimes claim nondisclosure related to smoking, substance use, dangerous hobbies, or occupational risks. As with medical issues, the insurer must show that the question was clearly asked and that the answer was materially false.
What Insurers Must Prove to Void a Policy
A life insurance company cannot void a policy simply because it finds something it does not like after death. To legally rescind coverage, the insurer must prove:
The application contained a false statement or omission
The statement was material to underwriting
The insurer relied on it when issuing the policy
The policy was still within the contestability period
If any of these elements fail, the policy remains enforceable.
In the Voya Resolution Life Insurance claim, the insurer could not meet this burden once the application and underwriting file were examined closely.
How We Challenged the Voya Denial
Our approach focused on the technical requirements for rescission rather than the insurer’s narrative. We examined:
The exact wording of the application questions
The insured’s answers in context
The underwriting guidelines in effect at issuance
Whether the alleged condition was actually material
Whether the insurer relied on the alleged omission
Once those issues were raised, the insurer’s attempt to void the policy collapsed. The denial was reversed and the full $129,000 benefit was paid.
When a Voided Policy Can Be Reinstated Through Legal Action
A life insurance policy that an insurer claims is void may still be enforceable when:
The application questions were unclear or overbroad
The alleged nondisclosure was not material
The condition was unrelated to underwriting risk
The insurer cannot prove reliance
The contestability period has expired
Many beneficiaries assume that a rescission letter is final. In reality, these determinations are often wrong and frequently overturned.
Help With Life Insurance Claims Allegedly Voided for Nondisclosure
Voiding a life insurance policy is one of the most extreme actions an insurer can take, and it is often used improperly. Insurers rely on beneficiaries accepting the decision without understanding the legal standards that apply.
Our firm focuses exclusively on denied life insurance claims nationwide. We regularly recover benefits in cases involving alleged nondisclosure, contestability disputes, and wrongful rescission.
We offer free consultations and handle all cases on a contingency fee basis. There are no fees unless benefits are recovered.