Bridgeport Life Insurance Lawyer

Can a life insurance claim be denied during the contestability period?

Yes. During the contestability period, which is usually the first two years after a policy is issued, the insurance company may investigate the application for misrepresentations. If the insurer believes important health or lifestyle information was not disclosed, it may attempt to rescind the policy and deny the claim.

Can a life insurance claim be denied because of a policy exclusion?

Yes. Life insurance policies often contain exclusions that limit coverage in specific situations. Examples may include suicide during the early policy period, certain criminal activity, or particular hazardous activities depending on the policy language.

Can an ERISA life insurance claim be denied because the employee did not complete evidence of insurability?

Yes. Many employer group life insurance plans governed by ERISA require evidence of insurability for coverage above a guaranteed issue amount. If the insurer claims the required medical approval was never completed, it may deny the additional coverage.

Can a FEGLI life insurance claim be denied because of a beneficiary dispute?

Yes. Disputes sometimes occur when multiple individuals claim the proceeds of a Federal Employees’ Group Life Insurance policy. Questions may arise about the validity of the beneficiary designation form or whether a later form replaced an earlier one.

Can an SGLI life insurance claim be denied because of a beneficiary designation issue?

Servicemembers’ Group Life Insurance claims may become disputed if there is uncertainty about the beneficiary designation. Problems may arise if the designation form was incomplete, lost, or challenged by family members.

Can a VGLI life insurance claim be denied if the coverage was not properly converted from SGLI?

Yes. Veterans’ Group Life Insurance requires that eligible service members apply within certain time limits after leaving military service. If the application was not completed within the allowed period, the insurer may argue that coverage never took effect.

What happens if there is a beneficiary dispute in a life insurance claim?

When more than one person claims the life insurance proceeds, the insurance company may delay payment while investigating the competing claims. In some situations, the dispute must be resolved through court proceedings.

What is an interpleader action in a life insurance claim?

An interpleader action occurs when the insurance company deposits the policy proceeds with a court and allows the competing claimants to litigate who should receive the money. This is often done when there is a beneficiary dispute.

Can a life insurance claim be denied because the insured failed to disclose a medical condition?

Insurance companies may attempt to deny claims if they believe a significant medical condition was not disclosed on the application. This issue is most common when the death occurs during the contestability period.

Can an ERISA life insurance claim be denied because the employee was not actively at work?

Some employer group life insurance plans require the employee to be actively at work on the effective date of coverage. If the insurer claims this requirement was not met, it may deny the claim.

Can a FEGLI claim be delayed because of a challenge to the beneficiary designation?

Yes. If there is a dispute over the validity of the beneficiary form, payment may be delayed until the issue is resolved. In some cases the dispute may be decided in federal court.

Can an SGLI claim involve an interpleader action?

Yes. If multiple individuals claim the SGLI proceeds, the insurance company may file an interpleader action so the court can determine the proper beneficiary.

Can a VGLI claim be denied because premiums were not paid?

Yes. Veterans’ Group Life Insurance requires that premiums remain current. If premiums were not paid and the policy lapsed, the insurer may deny the claim.

Can a life insurance claim be denied because the death falls under a policy exclusion?

Yes. If the insurer believes the circumstances of death fall within a specific exclusion listed in the policy, it may attempt to deny the claim based on that provision.

Can an ERISA life insurance claim be denied because of employer record errors?

Yes. In some cases the insurer claims that employer records do not show the employee was enrolled or eligible for coverage. These disputes often involve differences between employer records and insurance company records.

Can a FEGLI claim lead to a beneficiary dispute among family members?

Yes. Family members may challenge the validity of the beneficiary designation if they believe the form was forged, outdated, or signed without proper capacity.

Can an SGLI claim be delayed because the beneficiary designation is unclear?

Yes. If the designation does not clearly identify the intended beneficiary or if there are multiple conflicting records, the insurer may delay payment while reviewing the documents.

Can a VGLI claim be disputed if the insured applied for coverage after leaving military service?

Yes. VGLI coverage must be applied for within specific deadlines after separation from service. If the application was late or incomplete, the insurer may argue that coverage was never in effect.

What happens if a life insurance company files an interpleader action instead of paying the claim?

When an interpleader is filed, the insurance company deposits the proceeds with the court. The competing claimants must then present their claims to the judge, who determines who is entitled to the funds.

Can a life insurance claim be denied even if the premiums were paid?

In some situations insurers deny claims despite premiums being paid. This can happen when the insurer argues that coverage was never effective, that eligibility requirements were not met, or that a policy exclusion applies.