When someone applies for life insurance, accuracy is not optional. The application is a legally binding document that insurers rely on to assess risk and decide whether to issue coverage. If an insurance company later claims that the application contained false statements or omissions, it may deny the life insurance claim or attempt to rescind the policy entirely.
At LifeInsuranceAttorney.com, our life insurance lawyers focus exclusively on denied and delayed claims. We regularly challenge denials based on alleged false statements and recover benefits families were told they would never receive.
What Insurers Mean by Material Misrepresentation
A material misrepresentation is a statement or omission that would have affected the insurer’s underwriting decision. In other words, the insurer claims it would not have issued the policy, or would have issued it on different terms, had the truth been disclosed.
Insurers often stretch this concept beyond its legal limits. Not every incorrect answer qualifies as material. To deny a claim, the insurer must show that the alleged false statement actually mattered to the risk they were insuring.
Common insurer arguments include claims that the applicant:
• Failed to disclose a medical condition
• Misstated smoking or alcohol use
• Omitted a prior diagnosis or treatment
• Gave inaccurate information about income or occupation
Even when these statements are disputed, insurers frequently deny claims first and force beneficiaries to fight back.
Where False Statement Allegations Most Commonly Arise
Most misrepresentation disputes fall into predictable categories.
Medical History
Insurers routinely comb through years of medical records after death. Conditions such as diabetes, heart disease, cancer, mental health treatment, or even unexplained symptoms can become the basis for a denial. In many cases, the insured did not believe the condition was serious, relevant, or even diagnosed at the time of application.
Lifestyle Disclosures
Questions about smoking, alcohol use, and recreational activities are common on life insurance applications. Insurers aggressively deny claims when medical records or third-party data suggest occasional smoking, social drinking, or participation in activities the insurer later labels as hazardous.
Criminal History
Some applications ask about arrests or convictions. If the question is vague or poorly worded, insurers may later argue that a failure to disclose prior criminal history voids coverage, even when the offense had no relationship to the cause of death.
Financial Information
In certain policies, insurers evaluate income and assets to justify the amount of coverage. Allegations of overstated income or financial need are sometimes used to argue over-insurance or fraud, even when premiums were accepted for years.
We have handled false statement denials involving insurers such as Globe Life, Banner Life, Colonial Life, and CUNA Mutual, among many others.
The Contestability Period and Heightened Scrutiny
Most life insurance policies include a contestability period, typically the first two years after the policy is issued. If the insured dies during this window, the insurer has expanded authority to investigate the accuracy of the application.
This is when most false statement denials occur. Insurers compare the application to medical records, prescription data, and third-party databases. Any discrepancy, no matter how minor, may be labeled a material misrepresentation.
Outside the contestability period, insurers generally must prove intentional fraud to deny a claim. That is a much higher legal burden, which is why insurers aggressively investigate early deaths.
Intent Is Not Required for a Denial
Many families are shocked to learn that an honest mistake can still result in a denied claim. Life insurance law does not always require proof that the insured intended to deceive the insurer.
An omission caused by misunderstanding, poor memory, or unclear application questions can still be used against beneficiaries. That does not mean the denial is valid. It means the insurer expects the family not to challenge it.
Our firm regularly proves that:
• The question was vague or ambiguous
• The insured reasonably believed disclosure was not required
• The alleged misstatement had no impact on underwriting
• The omission was unrelated to the cause of death
These arguments frequently result in overturned denials or favorable settlements.
How We Challenge False Statement Denials
When a claim is denied based on alleged misrepresentation, we conduct a detailed legal and factual review, including:
• The exact wording of the application questions
• The insurer’s underwriting guidelines
• Medical records in proper context
• Whether the insurer completed adequate underwriting
• The relationship between the alleged misstatement and the cause of death
Insurers often rely on hindsight bias. They deny claims based on information discovered after death that they failed to investigate before issuing the policy. Courts routinely reject this tactic when properly challenged.
We have recovered denied benefits from insurers that initially accused policyholders of fraud, concealment, or deception. If you need help with a denied life insurance claim in Tennessee, we are ready to step in.
Frequently Asked Questions
What qualifies as a material misrepresentation
A false or omitted statement that would have affected the insurer’s decision to issue the policy or set the premium.
Can an honest mistake lead to denial
Yes. Even unintentional errors may trigger denials, especially during the contestability period. These denials are often challengeable.
What is the contestability period
Usually the first two years after policy issuance, when insurers are allowed to investigate application accuracy more aggressively.
Can a claim be denied after the contestability period
Only in limited circumstances, typically requiring proof of intentional fraud.
Does the cause of death matter
Yes. If the alleged misrepresentation had no connection to the cause of death, the denial may be improper.
How do insurers discover application errors
They review medical records, prescription history, employment data, and other records after death.
What if the insurer rescinded the policy
Rescission can often be challenged. We have successfully forced reinstatement or recovered benefits after rescission attempts.
Can beneficiaries fight these denials
Yes. With experienced legal representation, many false statement denials are overturned.
Which insurers deny claims for alleged false statements
We have handled these denials involving Globe Life, Banner Life, Colonial Life, CUNA Mutual, and many others.