Baltimore Life Insurance Lawyer

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

Yes. During the contestability period, insurers may review medical records and physician notes. If the insurer believes neurological symptoms were not disclosed and would have affected underwriting, it may attempt to rescind the policy.

Can a life insurance claim be denied because of an exclusion related to private aviation flights?

Some life insurance policies contain exclusions related to certain aviation activities such as private or noncommercial flights. If the insurer determines the death occurred during an excluded activity, it may attempt to deny the claim.

Can an ERISA life insurance claim be denied because the employee failed to complete the employer’s annual enrollment verification?

Yes. Employer group life insurance plans governed by ERISA sometimes require employees to verify coverage selections during annual enrollment. If the insurer claims the verification was not completed, it may argue that coverage never took effect.

Can a FEGLI life insurance claim be disputed if the beneficiary designation form is missing from the agency file?

Yes. If the Federal Employees’ Group Life Insurance designation form cannot be located in the agency records, disputes may arise about who should receive the proceeds.

Can an SGLI life insurance claim be delayed if the beneficiary designation lists someone with an incomplete name?

Yes. If the Servicemembers’ Group Life Insurance designation does not clearly identify the beneficiary, the insurer may delay payment while reviewing the documentation.

Can a VGLI life insurance claim be denied if the veteran never completed the required enrollment after separation?

Yes. Veterans’ Group Life Insurance requires a completed application after leaving military service. If the veteran never finalized the enrollment, the insurer may argue that coverage never began.

What is a beneficiary dispute in a life insurance claim?

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

What happens when an insurer files an interpleader action for life insurance proceeds?

When an insurer files an interpleader action, it deposits the policy proceeds with the court because there are competing claims. The court then decides 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 cardiac symptoms?

Yes. If the insurer believes the insured did not disclose symptoms 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 failed to properly enroll the employee in the plan?

Yes. Administrative errors sometimes occur when employers fail to submit enrollment information to insurers. The insurer may argue that coverage was never established.

Can a FEGLI claim lead to an interpleader lawsuit when several beneficiaries claim 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 completed incorrectly?

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 adult children?

Yes. Adult 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 unlawful activity?

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

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

Yes. Insurers often rely on eligibility 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 controls?

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 competing claimants file claims?

Yes. When multiple individuals claim 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 because premiums were not paid?

Yes. Veterans’ Group Life Insurance policies require regular premium payments to remain active. If the policy lapsed before 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.