We successfully recovered $106,250 for a beneficiary after WoodmenLife denied a life insurance claim based on alleged misrepresentation in the application. Woodmen Life asserted that the policyholder failed to fully disclose aspects of their medical history and claimed that this justified voiding the policy. After a detailed legal challenge, the insurer reversed its denial and paid the full benefit.
This outcome reflects a reality many families do not realize. A misrepresentation denial is often a starting position for the insurer, not the final word.
How We Overturned the Woodmen Life Denial
After the denial was issued, our attorneys obtained and reviewed the complete claim file, the original application, medical records, and Woodmen Life’s underwriting materials. The insurer claimed the insured omitted or misstated health information that would have affected coverage eligibility.
Our investigation showed otherwise.
The application questions were broadly worded, the insured answered consistently based on their understanding at the time, and Woodmen Life issued the policy without requesting clarification or additional underwriting review. Most importantly, the medical issue cited by the insurer had no relationship to the cause of death.
We demonstrated that the alleged omission was not material, meaning it would not have changed the insurer’s decision to issue the policy. Faced with documented underwriting inconsistencies and clear legal exposure, Woodmen Life reversed its position and paid the full $106,250 death benefit.
What Misrepresentation Really Means in Life Insurance Claims
Misrepresentation occurs when an insurer claims the applicant provided incorrect or incomplete information on the application. This does not require fraud. Even honest mistakes, misunderstandings, or forgotten details can be labeled misrepresentation by insurers if they believe the information might have affected underwriting.
This is why misrepresentation is one of the most commonly abused denial grounds in life insurance claims.
Insurers often argue that if they had known the “true facts,” they would have declined coverage or charged a higher premium. In practice, this argument is frequently unsupported by their own underwriting rules.
Why the Contestability Period Is Critical
Most life insurance policies include a two year contestability period. If the insured dies during this window, the insurer has broad authority to reexamine the application and search for discrepancies. This often includes reviewing years of medical records, prescription histories, and treatment notes that were never requested during underwriting.
If death occurs during this period, insurers routinely attempt to rescind policies based on technical or immaterial issues. Many beneficiaries assume this is automatic or unavoidable. It is not.
Even during the contestability period, the insurer must prove that the alleged misrepresentation was material and that the policy would not have been issued as written.
How Insurers Stretch the Misrepresentation Argument
In many cases, insurers use misrepresentation as a financial escape hatch rather than a legitimate fraud safeguard. We routinely see denials based on:
• Minor medical conditions resolved years earlier
• Vague questions that were reasonably misunderstood
• Failure to disclose symptoms rather than diagnoses
• Incomplete timelines where no follow up questions were asked
• Conditions unrelated to the cause of death
When insurers issue policies without clarifying answers or requesting records, they assume underwriting risk. They cannot later shift that burden onto grieving families simply because a claim is filed.
Our Legal Strategy in Misrepresentation Denials
To reverse misrepresentation based denials, our firm focuses on evidence insurers prefer not to discuss:
• The exact wording of application questions
• The insured’s reasonable interpretation of those questions
• Underwriting manuals and approval standards
• Whether follow up questions should have been asked
• Whether the alleged omission truly affected risk
• The absence of any connection to the cause of death
In the Woodmen Life case, these factors made it clear the denial would not survive litigation.
Do Not Accept a Misrepresentation Denial at Face Value
Woodmen Life, like many insurers, relied on the assumption that the beneficiary would not challenge the denial. That assumption was wrong.
Our firm has reversed misrepresentation denials involving Woodmen Life, Penn Mutual, Primerica, Sammons, and many other carriers. We handle denied life insurance claims nationwide and work on a contingency basis. No recovery means no fee.
If your life insurance claim was denied based on alleged misrepresentation, especially during the contestability period, legal review can make the difference between a closed file and a full payout.