Life Insurance Lawyer Maryland

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2025 Maryland Denied Life Insurance Claims

  • Mass shooting Maryland death denial $139,000.00
  • Lincoln Memorial sickness exclusion $52,000.00
  • Accidental Death & Dismemberment claim $204,000.00
  • Global Life felony exclusion case $102,000.00
  • SGLI claim denial beneficiary change $408,200.00
  • Kentucky Central Life alcohol exclusion $55,000.00
  • First National Life fentanyl exclusion $122,000.00
  • AD&D denial due to alcohol and drugs $583,000.00
  • London Pacific lapse in payment we won $75,000.00
  • Monarch Life interpleader lawsuit won $211,000.00
  • Universe Life COVID-19 exclusion we fought $349,000.00
  • Genworth beneficiary dispute interpleader $312,750.00
  • Penn Treaty Life denial of benefits exclusion $509,300.00
  • Denied SGLI claim two beneficiaries disputing $405,290.00
  • Prudential nonpayment of premium lapse $258,200.00
  • Security National alcohol exclusion denial $113,000.00
  • Summit National beneficiary issue resolved $227,000.00
  • American General material misrepresentation $422,500.00
  • Denied FEGLI claim due to exclusion $401,200.00
  • Lincoln National suicide exclusion $104,300.00
  • Maryland denied life insurance claim $1,759,250.00
  • Unison International denial life insurance claim $501,800.00
  • Denied AD&D claim self-inflicted injury $502,900.00
  • American change of beneficiary $314,820.00
  • Pioneer divorce and ex-spouse $175,300.00
  • AIG accidental death AD&D claim $516,900.00
  • Northwestern Mutual lapse of policy $150,000.00
  • United Republic Life denied claim $212,000.00
  • Denial of Accidental Death & Dismemberment 870,000.00
  • Banner prescription drug exclusion $106,000.00
  • Transamerica autoerotic asphyxiation $224,600.00
  • Cigna dispute among beneficiaries $317,100.00
  • Denied life insurance claim Maryland $752,630.00
  • Bankers denial of life benefits won $116,000.00

In Maryland, life insurance plays a pivotal role in providing financial security for families in the event of an untimely death. However, there are times when life insurance claims are denied, and the reasons behind these denials can be more complex than most policyholders realize. While many people are aware of common reasons like missed premium payments or failure to disclose pre-existing conditions, there are other, less commonly discussed reasons why a claim may be denied. Insurers such as Symetra, AIG, and Transamerica may refuse to honor a claim based on certain clauses or conditions that policyholders might not fully understand. Additionally, disputes over who should receive the death benefit can lead to significant delays in payouts, as well as the need for life insurance interpleader lawsuits.

One lesser-known reason for claim denial in Maryland involves the “material misrepresentation” of the insured’s lifestyle or occupation. While most individuals are aware that they must accurately disclose their medical history on the life insurance application, they may not realize the extent to which insurers investigate their occupation or personal activities. For instance, life insurance companies like Prudential, Nationwide, and MetLife could deny a claim if they find that the insured failed to disclose a high-risk occupation or dangerous hobbies, such as skydiving, rock climbing, or working in hazardous conditions like mining or construction. These activities, which may seem harmless or routine to the policyholder, can significantly increase the risk of injury or death, making them material to the insurer's decision to issue the policy in the first place. If the insured dies in an accident related to one of these activities, the insurance company could argue that they were never informed about the risk involved, and therefore, the claim should be denied. Even if the death seems unrelated to the disclosed occupation or activity, the insurer may use the failure to disclose these risks as grounds to reject the claim.

Another less common reason for a life insurance claim denial in Maryland is due to the “suicide clause” in many policies. While most people are familiar with the fact that life insurance will not pay out if the insured dies by suicide within the first two years of the policy, the specifics of how insurers handle these claims can be more nuanced. For example, companies like Lincoln Heritage, Reliastar, and Hartford Life may continue to investigate a death even if the suicide occurs after the contestability period, particularly if there are reasons to believe that the insured was in a mental health crisis at the time of death. If the insurer determines that the individual was mentally incapacitated or that the death was linked to a pre-existing mental health issue that wasn’t fully disclosed on the policy application, they may still contest the claim. Even if the insured’s death was ruled a suicide after the two-year period, the insurance company might argue that the insured's mental health conditions significantly contributed to the cause of death. This situation can lead to delays, denials, and extensive legal battles, leaving the beneficiaries in a difficult position as they try to secure the financial support they need.

In some cases, life insurance companies may deny claims based on a “criminal activity exclusion.” Life insurance policies, particularly those issued by insurers like USAA, Lincoln Financial, and Securian, often include clauses that exclude coverage for deaths caused by illegal activities. For example, if an insured person dies while committing a crime, such as engaging in a robbery or other unlawful activities, the insurance company may argue that the policy should not cover the death because it occurred while the insured was participating in criminal conduct. This can be a contentious issue, especially if the circumstances surrounding the death aren’t immediately clear. A policyholder could have been involved in a criminal event that led to their death, even if the death appeared accidental, and this could lead the insurer to contest the claim. Insurers may also deny claims if the insured had a history of criminal behavior that wasn’t disclosed during the application process. This clause can create a particularly difficult situation for beneficiaries who may be left without the life insurance proceeds due to the insured’s involvement in illegal activities that were not previously disclosed.

Another reason that might not be immediately obvious to policyholders in Maryland involves the “failure to notify” clause. Many life insurance policies contain requirements about notifying the insurer of certain changes to the policyholder’s circumstances, such as a change of address, change of beneficiary, or significant health changes. Insurers like MetLife, Globe Life, and Reliance Standard could deny a claim if they can prove that the policyholder failed to inform them of such changes. For instance, if the insured changes their beneficiary and does not notify the insurance company in writing, or if a policyholder moves to a different state and does not update their address with the insurer, these issues could result in a denied claim. While this may seem like a minor detail, it could have serious implications for beneficiaries who find themselves unable to receive the death benefit. Even if the insurer has no reason to believe that the change in circumstances directly caused the insured’s death, the lack of notification could still give them grounds to reject the claim, forcing the beneficiaries to navigate the complicated process of proving that they were entitled to the payout.

Perhaps one of the most difficult situations arises when there are disputes between beneficiaries. Even when a life insurance policy is clearly written, disputes can occur over who should receive the death benefit. These disputes can happen if the policyholder did not update their beneficiary designation after a significant life change, such as a divorce, remarriage, or the birth of children. In Maryland, disputes between beneficiaries are not uncommon, especially when family members or other parties have conflicting claims. An ex-spouse may claim entitlement to the benefits, arguing that they are still the rightful beneficiary, or siblings may dispute the terms if the policyholder never clearly communicated their intentions. In these cases, life insurance companies like Symetra, Securian, and American General may be caught in the middle and unable to resolve the situation without legal intervention. The insurer may decide to file an interpleader lawsuit, which is a legal process used to resolve the issue when multiple parties are competing for the benefits. The insurer essentially asks the court to decide who the rightful beneficiary is. While this protects the insurance company from liability, it can leave the beneficiaries waiting months or even years for a resolution, during which time they may be relying on the death benefit to cover expenses.

Life insurance interpleader lawsuits are relatively rare but not unheard of in Maryland. If there are conflicting claims from multiple parties, companies such as Transamerica, Lincoln Financial, and AIG may file an interpleader action to resolve the dispute. The insurer essentially deposits the death benefit into the court’s custody and asks the judge to determine which claimant is entitled to the funds. While the intention is to avoid further complicating the situation, these lawsuits can significantly delay the payout, often creating more tension among family members who are already grieving the loss of a loved one. If the interpleader lawsuit drags on, it can prolong the financial uncertainty and strain the relationships between family members who were once in agreement about the distribution of the proceeds.

In some cases, the insurer may also conduct an extensive investigation into the insured's activities leading up to their death, particularly if the insured was involved in risky activities or had an unconventional occupation. If a life insurance policyholder was, for example, a pilot or someone involved in extreme sports, insurers like Nationwide, Banner Life, and State Farm might investigate whether the insured disclosed these activities accurately during the application process. If the insurer determines that the insured’s occupation or activities significantly increased the risk of death, and that information was not disclosed, the claim could be denied on the basis of non-disclosure or misrepresentation.

Questions about life insurance claims in Maryland

What do I do if my life insurance claim in Maryland was denied?

You need to a top Maryland life insurance lawyer to represent you.

What do I do If I was served with a life insurance interpleader lawsuit in Maryland?

You don't want to jeopardize your case, so you'll need a top Maryland life insurance attorney for representation.

What do I do if I have a life insurance beneficiary dispute in Maryland?

Our top Maryland life insurance law firm can represent you with respect to your beneficiary dispute.

Why would an accidental death & dismemberment life insurance claim in Maryland be denied?

An AD&D life insurance claim is typically denied either because the death was caused by a medical event not an accident, or that there was alcohol involved which is typically an exclusion in the policy.

Can policy lapse be a reason for a denied life insurance claim in Maryland?

Yes, but the lapse can be contested by our life insurance attorneys.

Is alleged misrepresentation on a life insurance application a reason for a denied life insurance claim in Maryland?

Yes, but our life law firm can dispute the misrepresentation.

Can an alcohol exclusion be a reason for a denied life insurance claim in Maryland?

Yes, but there are ways a life insurance lawyer can dispute this.

What do I do about a bad faith ERISA life insurance denial of death benefits in Maryland?

As you only have one appeal, best to have our lawyers resolve it.

What should I do about a life insurance contestability period claim denial in Maryland?

You should always get legal representation as any denial can be contested.

What do I do if I get a denial letter for my life insurance claim stating it was denied due to Maryland state law?

There are many exceptions to denials based on Maryland state law.

What are the worst life insurance companies in Maryland for paying claims?

These Maryland life insurance companies deny many claims: Baltimore Life Insurance.

Maryland Life Insurance Law

Most life insurance policies are relatively simple. The insured obtains a policy and pays insurance premiums to keep that policy active. In the event the policyholder dies and his manner of death is not subject to any policy exclusion (such as suicide), then his designated beneficiary will receive a death payout in the amount called for in the policy. At least, that is how it is supposed to work.

In reality, however, things are not always that simple. Many people obtain a life insurance policy, name a beneficiary under the policy, then never really think about the policy again other than to make premium payments from time to time. In the meantime, all sorts of life events can occur that would make the policyholder wish he had paid more attention to what would happen to policy proceeds when he passed away.

As attorneys who specialize in the wrongful denial of life insurance claims, we see these issues arise all the time. Often, we are called upon to fight for the rights of a contingent or unnamed beneficiary who believes the insured’s policy did not express his true intentions at the time of death. While we can often successfully contest claim denials issued against these individuals, the best course is for policyholders to regularly revisit their policies to ensure their current intentions are clearly expressed.

This article explores three important life events that underscore the importance of changing beneficiary designations to match current intent. Two of those scenarios also highlight how critical it is for policyholders to name a contingent beneficiary. We hope these vignettes serve as a reminder that life insurance policies are only as good as your effort to keep them up-to-date.

Divorce and the life insurance claim

Naturally, when most married people obtain a life insurance policy, they name their spouse as a beneficiary. Yet, in truth, 40 to 50% of American marriages end in divorce. While many divorce decrees mandate what should happen to life insurance policies held by the spouses, some people forget to include them in their asset lists. When they later die, the person they least want to benefit from their death ends up being the person still named as a beneficiary.

We see cases all the time where a divorced person simply forgets to change his beneficiary under the policy. This happens even where there are no divorce-related restrictions on changing the beneficiary and where the policyholder later remarries another person. Not surprisingly, these cases often end up in a nasty lawsuit between the named beneficiary (the first spouse) and the person who is likely the intended beneficiary (the current spouse).

We’ve seen these cases go both ways, but generally speaking, courts will uphold the express terms of the policy. In other words, the ex-spouse is likely to be the person who receives the benefit upon the policyholder’s death.

Note, however, that in cases where the policyholder failed to ever name a beneficiary at all, the ex-spouse is unlikely to receive policy proceeds. Rather, the death payout will be distributed as part of the policyholder’s estate.

Ultimately, the best course of action is to revisit your life insurance policy’s beneficiary designations as soon as your divorce is finalized. If the divorce decree mandates that certain persons be designated – the ex-spouse or the couple’s children, for example – then those instructions should be followed to the letter. If not, name someone who won’t have you turning in your grave when it comes time for your life insurance company to make a policy payout.

Beneficiary pre-deceases the life insurance policyholder

This is another common scenario where people forget to undertake the important task of changing their life insurance beneficiary designations. Imagine a childless couple where the husband has a life insurance policy naming his wife as the sole beneficiary. What happens if she passes away before him and he fails to change his beneficiary designation? In most states, his life insurance proceeds would be distributed as an estate asset. In many cases, however, that means those dollars end up in the hands of someone the policyholder never would have chosen.

This situation underscores the importance of naming a contingent beneficiary. Under most policies, the contingent beneficiary only recovers the life insurance proceeds if the primary beneficiary pre-deceases the policyholder. While it can be uncomfortable for couples to go through the process of naming contingent beneficiaries, it is a critical step toward protecting the policyholder’s full and true intentions.

Life insurance beneficiary kills the policyholder

In one final scenario that is (thankfully) less common than the other two, courts are sometimes called upon to decide what happens to life insurance proceeds when the beneficiary is deemed to be the person who killed the policyholder. What happens then?

Most states have what are known as “slayer statutes.” These laws basically prevent a killer from benefitting financially from their act of ending another person’s life. This means they won’t collect life insurance proceeds (even if they are the named beneficiary) and they won’t collect on any inheritance set aside for them in the deceased’s will.

Again, this is a scenario where having a contingent beneficiary is critical. Without naming that alternate beneficiary, life insurance proceeds will likely end up in the hands of an heir that may or may not be a match for the policyholder’s intentions.

In our line of work, we see fights over improper beneficiary designations all the time. While we are happy to fight for the rights of deserving beneficiaries (and have a very successful record at doing so), the best course for all life insurance policyholders is to simply revisit their designations any time a major life event occurs. Ultimately, clear and current beneficiary designations are the safest way to ensure your final wishes are carried out.

If you have received a life insurance claim denial on the basis that you are not the proper beneficiary, we may be able to help you. Call us today for a free consultation. We’re here to help.

Dealing with the death of a child is a very traumatic experience. Unfortunately, it can also be very costly. Hospital bills and funeral costs are just the beginning of it. Parents will often miss work, and they may suffer in other ways that hurt them financially. Life insurance for children is meant to help ease this burden. Here are some sad stories.

Babies Are at Risk

In 2017, the Washington Post ran a story about a string of murders that appear to all have been tied to life insurance policies. Perhaps the most horrifying part is that all the victims were either children or developmentally disabled. In one case, a man took out a $750,000 policy on his newborn infant son. He was the sole beneficiary, and he was spending $150 a month on premiums despite earning a salary of only $1,500 per month.

He seemed to be a good father, but then the child died mysteriously. When he tried to collect on the policy, the life insurance company noticed he was acting strangely and trying to schedule medical evaluations without the child’s mother knowing about it. He would later explain that the insurance policy was supposed to be some form of college savings, but instead of collecting the insurance, the dad would up in jail for murder.

Backlash And Industry Concern

That was just one story. The Post also looked at the case of a 37-year-old disabled person that was shot and another infant that was either drowned or suffocated. These tragic cases are not unique, and there is actually a Coalition Against Insurance Fraud that seeks to deter such fraud. This group, which is largely funded by insurance companies, has actually urged the insurance industry to be more critical of child insurance policies.

The group points out that many insurance scams have huge red flags in hindsight. Taking out a massive insurance policy on a child for no reason should be a warning sign. New regulations have been put in place in states like New York and Washington following highly-publicized cases where children were murdered for their life insurance.

Some Scrutiny May Be Expected, But It Should Be Fair

If your child has passed away, please accept our deepest condolences. If your child was insured, we understand it can be a terrible process to request the death benefits. You should certainly be aware that the insurance company may want to investigate the circumstances. It just makes sense, given the horrible history in this area. That said, insurance companies are wrong to deny valid claims without proper cause.

If you have had a claim denied, you should get your case reviewed by an experienced life insurance lawyer as quickly as possible. You usually have a limited amount of time to challenge the denial, and you need a seasoned life insurance attorney to give you the best chance of success. At Lassen Law, we have seen this all before and if it is appropriate we will vigorously fight for the full policy amount.

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