Bangor Life Insurance Lawyer

Can a life insurance claim be denied during the contestability period because the insured failed to disclose prior fainting episodes?

Yes. During the contestability period, insurers may review medical records to determine whether symptoms such as fainting or loss of consciousness were disclosed on the application. If the insurer believes the omission would have affected underwriting, it may attempt to rescind the policy.

Can a life insurance claim be denied because of an exclusion related to motorcycle racing?

Some life insurance policies contain exclusions related to certain racing activities. If the insurer determines the death occurred during an activity listed in the exclusion, it may attempt to deny the claim.

Can an ERISA life insurance claim be denied because the employee was not actively working on the effective date of coverage?

Yes. Some employer group life insurance plans governed by ERISA require employees to be actively at work when coverage begins. If the insurer claims this requirement was not met, it may deny the claim.

Can a FEGLI life insurance claim be disputed if the beneficiary designation form was filled out incorrectly?

Yes. If the Federal Employees’ Group Life Insurance designation form contains errors or incomplete information, the insurer may review the documentation before paying the benefit.

Can an SGLI life insurance claim be delayed if the beneficiary designation lists multiple individuals but the shares are unclear?

Yes. If the Servicemembers’ Group Life Insurance designation does not clearly specify how the proceeds should be divided, the insurer may delay payment while reviewing the records.

Can a VGLI life insurance claim be denied if the veteran failed to apply for coverage within the eligibility period?

Yes. Veterans’ Group Life Insurance must be applied for within certain time limits after separation from military service. If the veteran applied too late, the insurer may argue that coverage never existed.

What is a beneficiary dispute in a life insurance claim?

A beneficiary dispute occurs when two or more individuals claim the same life insurance proceeds or when someone challenges the validity of the beneficiary designation.

What does it mean when an insurer files an interpleader action for life insurance proceeds?

An interpleader action occurs when the insurer deposits the policy proceeds with the court because there are competing claims. The court determines which claimant is entitled to the funds.

Can a life insurance claim be denied during the contestability period because the insured failed to disclose prior medical evaluations?

Yes. If the insurer believes the insured did not disclose medical evaluations that would have influenced underwriting decisions, it may attempt to rescind the policy during the contestability period.

Can an ERISA life insurance claim be denied because the employer reported incorrect coverage information?

Yes. Administrative errors sometimes occur when employers transmit coverage data to insurers. The insurer may dispute the claim based on its records.

Can a FEGLI claim lead to an interpleader lawsuit when several claimants assert rights to the benefit?

Yes. If competing claims are made to the FEGLI proceeds, the insurer may file an interpleader action so a court can determine the rightful beneficiary.

Can an SGLI claim be challenged if family members believe the beneficiary designation was altered?

Yes. If someone alleges that the designation form was altered or improperly modified, the insurer may delay payment while the dispute is investigated.

Can a VGLI claim involve a dispute between the named beneficiary and surviving relatives?

Yes. Family members sometimes challenge the validity of a beneficiary designation if they believe it is invalid or outdated.

Can a life insurance claim be denied because of an exclusion related to criminal activity?

Some policies contain exclusions for deaths that occur during certain unlawful acts. If the insurer believes the exclusion applies, it may attempt to deny the claim.

Can an ERISA life insurance claim be denied because the employee was not included in the insurer’s eligibility file?

Yes. Insurers often rely on eligibility data submitted by employers. If the employee was not included in those records, the insurer may deny the claim.

Can a FEGLI claim be delayed if the insurer cannot determine which beneficiary designation form is controlling?

Yes. If multiple designation forms exist, the insurer may review the records to determine which one governs the benefit before paying the claim.

Can an SGLI claim result in an interpleader action when multiple claimants assert rights to the proceeds?

Yes. When competing claims are made to the SGLI proceeds, the insurer may deposit the funds with the court through an interpleader action.

Can a VGLI claim be denied if the policy lapsed due to unpaid premiums?

Yes. Veterans’ Group Life Insurance policies must remain active through regular premium payments. If the policy lapsed before the insured’s death, the insurer may deny the claim.

Can a life insurance claim be denied because of an aviation exclusion?

Some policies contain exclusions for deaths that occur during certain aviation activities. If the insurer believes the exclusion applies to the circumstances of the death, it may attempt to deny the claim.

Can a beneficiary dispute delay payment of life insurance proceeds?

Yes. When competing claims or challenges to the beneficiary designation arise, insurers often delay payment or file an interpleader action until the dispute is resolved.