AIG life insurance claims are often issued under names such as American General Life Insurance Company or The United States Life Insurance Company in the City of New York. Many beneficiaries search for “AIG life insurance denial” only to find the policy was technically issued by American General. The branding can be confusing, but the legal obligations come from the issuing company listed on the policy.
If your AIG or American General life insurance claim has been denied or placed under extended review, the key is understanding how this carrier investigates claims and where denials tend to break down.
How AIG Handles Life Insurance Claim Investigations
AIG is known for detailed claim reviews, particularly in the following situations:
Early duration deaths
If the insured passed away within the first two policy years, AIG commonly conducts a contestability investigation. That review may involve ordering full medical records, pharmacy histories, MIB reports, driving records, and sometimes financial background checks.
High face value policies
Larger policies often receive more scrutiny. Financial justification, income verification, and insurable interest may be reexamined even if they were accepted at underwriting.
Foreign death claims
If death occurred outside the United States, expect requests for consular records, translated death certificates, and detailed circumstances of death.
Accidental death rider claims
When an AD&D rider is involved, AIG may closely analyze toxicology, medical examiner language, and contributing conditions.
Common AIG Life Insurance Denial Reasons
Alleged application misstatements
AIG may assert that the insured failed to disclose medical conditions, prior diagnoses, treatment history, tobacco use, or hazardous activities. The company will often argue the information would have changed underwriting decisions.
Financial misrepresentation
In some cases, AIG claims that income or net worth information was inaccurate and that the policy would not have been issued at the stated amount.
Policy not in force
Denials may be based on lapse arguments, especially where premiums were missed, drafts failed, or reinstatement paperwork was incomplete.
Exclusions
Depending on policy language, AIG may rely on suicide clauses, aviation exclusions, criminal activity exclusions, or specific hazardous activity provisions.
American General Name Confusion
Many AIG policies are issued under American General Life Insurance Company. Beneficiaries sometimes believe they are dealing with two separate companies. In reality, the claim department typically handles matters under the issuing entity’s name.
It is critical to confirm:
The exact issuing company
The policy number
The state where the policy was delivered
These details affect which law applies and what the insurer must prove.
What to Examine in an AIG Denial
Do not stop at the denial letter explanation. Request and review:
The complete underwriting file
All versions of the application
Any paramed exam results
Recorded statements taken during underwriting
Internal underwriting guidelines used at the time of issue
The claim log and adjuster notes
In misrepresentation cases, the real issue is often whether the alleged omission was truly material under the company’s own underwriting standards at the time the policy was approved.
Reinstatement and Drafting Errors
Some AIG denials involve policies that lapsed and were later reinstated. If the death occurs after reinstatement, the company may scrutinize the reinstatement application separately from the original application.
Questions to consider:
Were reinstatement health questions clearly answered
Did the company accept late premiums without objection
Were proper lapse notices sent to the correct address
Administrative errors in premium processing are more common than most beneficiaries realize.
Recorded Statement Requests After Death
In some investigations, AIG may request interviews from beneficiaries or family members. These statements can later be used to support a denial theory.
Before participating in any recorded interview, understand the purpose of the questions and how your responses may be interpreted.
Appeal Rights and Deadlines
If the policy was provided through an employer plan, strict internal appeal deadlines apply. Missing those deadlines can severely limit what evidence can later be introduced in court.
For individually owned policies, state law governs time limits to file suit. Extended back and forth communication with the insurer does not necessarily pause those deadlines.
When an AIG Denial Can Be Challenged
A denial is not automatically valid simply because it references policy language. Successful challenges often focus on:
Whether the alleged misrepresentation was actually material
Whether underwriting standards were applied consistently
Whether policy language is ambiguous
Whether the company relied on incomplete or selective medical records
Each case turns on its specific facts, but careful review of the underwriting and claim handling record is usually the starting point.
If your AIG or American General life insurance claim has been denied, the next step is not guesswork. It is obtaining the full file, understanding the precise basis of the decision, and determining whether the insurer can legally support its position.