We successfully recovered a $101,000 life insurance payout after a wrongful denial by Ladder Life. The claim was denied during the two-year contestability period, a provision insurers frequently use to delay or avoid payment after a policyholder’s death.
At LifeInsuranceAttorney.com, we focus exclusively on denied and delayed life insurance claims. We regularly overturn contestability-based denials from Ladder Life and other major insurers, including Pacific Life, Northwestern Mutual, State Farm, Protective Life, and Lincoln Financial.
What the Contestability Period Really Means
Most life insurance policies contain a two-year contestability clause. If the insured dies during this period, the insurer is allowed to re-examine the original application and underwriting file. This review often includes medical records, prescription history, employment information, and lifestyle disclosures.
While the clause exists to prevent fraud, insurers routinely use it to deny legitimate claims based on minor or irrelevant issues. These investigations often focus on alleged omissions involving:
• Prior medical conditions
• Prescription medications
• Height or weight discrepancies
• Tobacco or alcohol use
• Past procedures or diagnostic testing
• Occupation changes or recreational activities
In many cases, the alleged issue has no connection to the cause of death. That did not stop Ladder Life from issuing a denial in this case.
How Insurers Use Alleged Misrepresentation to Deny Claims
During the contestability period, insurers often allege material misrepresentation. They claim the policy would not have been issued, or would have been issued differently, had certain information been disclosed.
We routinely see denials based on:
• A single emergency room visit years earlier
• Medications prescribed for short-term or precautionary use
• Social or infrequent smoking
• Misunderstood mental health questions
• Family medical history that was misstated or incomplete
Even when these issues are unrelated to the death, insurers argue they justify rescinding the policy. Courts and state law do not always support this position.
In the Ladder Life case, we demonstrated that the alleged omission was immaterial, unintentional, and unrelated to the cause of death. Ladder Life ultimately reversed its position and paid the full $101,000 benefit.
Honest Application Errors Are Not Fraud
Life insurance applications are often long, confusing, and completed online without agent assistance. Applicants frequently misunderstand questions or forget minor medical details.
Insurers attempt to convert these human errors into fraud allegations after death. We push back by showing:
• The insured did not intend to mislead
• The condition was minor, controlled, or resolved
• There was no causal link to the death
• The application language was vague or ambiguous
We have used these arguments successfully against Ladder Life, Guardian Life, AARP Life, MassMutual, Hartford Life, Primerica, and many others.
Cause of Death Scrutiny During the Contestability Period
Insurers also closely examine how the insured died. If the death involves drugs, alcohol, accidents, or ambiguous circumstances, insurers may attempt to apply exclusions or suicide provisions improperly.
Suicide clauses typically apply only if death occurs within two years and only if the evidence supports that conclusion. Misclassification of death is common. We analyze autopsy findings, toxicology reports, and coroner conclusions to challenge unsupported insurer assumptions.
How We Won the Ladder Life Claim
Our firm took control of the case immediately after the denial. We reviewed the policy, the application, the underwriting file, and the insurer’s stated rationale. We assembled medical records and expert analysis to rebut the misrepresentation claim and prepared a detailed legal appeal.
Our arguments focused on:
• Lack of materiality
• No connection to the cause of death
• Ambiguous application questions
• Absence of intent to deceive
Ladder Life ultimately paid the full $101,000 benefit rather than defend an unsupportable denial.
Contestability Period Denials Are Not Final
A denial letter is not the end of the claim. It is often the beginning of the legal process.
We routinely overturn contestability-based denials through appeals and litigation against insurers including AIG, Banner Life, Brighthouse Financial, Ethos, Lumico, and others. Digital and online insurers are subject to the same legal standards as traditional carriers.
If your life insurance claim was denied during the contestability period, legal review is critical. If you need a New Jersey life insurance lawyer, we are ready to help.
Frequently Asked Questions About Contestability Period Denials
What is the contestability period?
It is usually the first two years of a life insurance policy during which insurers may investigate and deny claims based on alleged misstatements.
Can a claim be denied for a small mistake?
Insurers try. Minor or irrelevant errors are often used as pretexts for denial.
Does the omission have to cause the death?
Not always, but lack of causation is a powerful defense and frequently leads to reversal.
Is suicide always excluded during the first two years?
Only if the policy contains a suicide clause and the evidence supports that conclusion.
Can contestability denials be appealed?
Yes. Many are overturned with proper legal representation.
Do you handle online life insurance denials?
Yes. We regularly challenge denials from digital insurers like Ladder Life and win.
How long do I have to act?
Deadlines vary. Delay can permanently harm the claim. Immediate legal review is essential.