Fraud / Material Misrepresentation Fact Sheet

Christian Lassen, Esq. | Quoted in The Wall Street Journal | 25 Years Experience Helping beneficiaries nationwide challenge life insurance claims denied for alleged fraud or misrepresentation.

What Is Fraud / Material Misrepresentation?

Fraud or material misrepresentation occurs when an insurer claims the insured provided false, incomplete, or misleading information on the life insurance application. Common examples include failing to disclose medical history, smoking habits, or prior diagnoses.

If the insurer proves the misrepresentation was “material” meaning it affected their decision to issue coverage they may deny the claim or void the policy entirely.

Why Claims Get Denied

• Insurers often deny claims based on alleged misrepresentation. Common scenarios include:
• Failure to disclose pre‑existing medical conditions
• Omitting smoking, alcohol, or drug use history
• Inaccurate employment or income information
• Misstatements about prior hospitalizations or treatments
• Errors in application completed by agents or employers
• Allegations of intentional fraud by the insured
• Death occurring within the contestability period (usually first 2 years), triggering insurer review

What To Do If Your Claim Was Denied

1. Request the denial letter and claims file from the insurer.
2. Obtain a copy of the original application and compare it to medical records.
3. Determine whether the alleged misstatement was material to coverage.
4. Consult an experienced life insurance attorney many denials can be challenged.
5. Act quickly contestability reviews and appeals have strict deadlines.

Your Legal Rights

• Insurers must prove the misrepresentation was material and intentional.
• Beneficiaries can challenge denials caused by minor errors or agent mistakes.
• Courts often overturn denials when insurers misuse misrepresentation claims to avoid payment.

Case Example

We helped a widow recover $500,000 after her claim was denied for alleged misrepresentation of smoking history. By proving the insurer’s evidence was insufficient and the misstatement was not material, we secured full payment.

Frequently Asked Questions

Q: What counts as “material” misrepresentation? 

A: Information that would have changed the insurer’s decision to issue coverage or set premiums.

Q: Does every error void the policy? 

A: No only material misstatements can justify denial. Minor errors are not grounds for voiding coverage.

Q: What if the agent filled out the application incorrectly? 

A: Insurers cannot deny claims based on agent mistakes if the insured provided accurate information.

Q: Do I need an attorney? 

A: Yes fraud and misrepresentation disputes are complex and often involve litigation.

How We Help

• Review applications, medical records, and insurer claims files.
• Challenge wrongful denials based on alleged misrepresentation.
• File lawsuits for breach of contract and bad faith when necessary.
• Secure rightful payouts for families nationwide.

Contact Us

If your life insurance claim was denied for alleged fraud or misrepresentation, don’t wait. Insurers count on families giving up. Call 800‑330‑2274 for a free consultation. No fees unless we win.

Key Takeaways

• Fraud or material misrepresentation is a common reason for claim denials.
• Insurers must prove misstatements were material and intentional.
• Beneficiaries can challenge denials caused by minor errors or agent mistakes.
• Prompt legal action increases the chance of success.

Written & Reviewed by Christian Lassen, Esq., Nationally recognized life insurance lawyer: 25 years experience, hundreds of millions recovered.  Quoted in The Wall Street Journal ( May 17, 2025).

Last reviewed: Dec 7, 2025 | Contact 800-330-2274