Portland ME Life Insurance Lawyer

Can a life insurance claim be denied during the contestability period because the insured failed to disclose prior high blood pressure readings?

Yes. During the contestability period, insurers may review medical records to determine whether elevated blood pressure or related conditions 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 rock climbing or mountaineering?

Some life insurance policies contain exclusions related to certain high risk outdoor 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 failed to complete enrollment before the coverage deadline?

Yes. Employer group life insurance plans governed by ERISA often require employees to enroll during specific time periods. If the insurer claims the enrollment was not completed in time, it may argue that coverage never became effective.

Can a FEGLI life insurance claim be disputed if the beneficiary designation form lists an organization instead of an individual?

Yes. If the Federal Employees’ Group Life Insurance designation names an organization, the insurer may review the documentation carefully to confirm the intended beneficiary.

Can an SGLI life insurance claim be delayed if the beneficiary designation is missing from the service member’s records?

Yes. If the Servicemembers’ Group Life Insurance beneficiary designation cannot be located, the insurer may delay payment while determining who is entitled to the benefit under the applicable rules.

Can a VGLI life insurance claim be denied if the veteran did not convert coverage within the required timeframe after leaving service?

Yes. Veterans’ Group Life Insurance requires a timely application after separation from military service. If the veteran did not apply within the allowed period, the insurer may argue that coverage never began.

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 happens when an insurer files an interpleader action involving a life insurance policy?

When an insurer files an interpleader action, it deposits the policy proceeds with the court because there are competing claims. The court determines which claimant is entitled to receive the funds.

Can a life insurance claim be denied during the contestability period because the insured failed to disclose a chronic condition?

Yes. If the insurer believes the insured did not disclose a chronic medical condition 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 misreported the employee’s work status?

Yes. Administrative errors sometimes occur when employers transmit eligibility or employment information to insurers. The insurer may dispute the claim based on its records.

Can a FEGLI claim lead to an interpleader lawsuit when multiple beneficiaries claim the proceeds?

Yes. If competing claims are made to the FEGLI benefit, 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 changed improperly?

Yes. If someone questions whether the designation form was properly executed, the insurer may delay payment while the dispute is investigated.

Can a VGLI claim involve a dispute between the named beneficiary and the insured’s children?

Yes. Children or other relatives may challenge the validity of a beneficiary designation if they believe it is outdated or invalid.

Can a life insurance claim be denied because of an exclusion related to illegal 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 enrollment system?

Yes. Insurers often rely on enrollment files 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 several 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 nonpayment of 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.