Boston Life Insurance Lawyer

Can a life insurance claim be denied during the contestability period because the insured failed to disclose prior irregular heartbeat issues?

Yes. During the contestability period, insurers may review medical records and cardiac history. If the insurer believes irregular heartbeat issues 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 extreme sports competitions?

Some life insurance policies contain exclusions related to organized extreme sports. If the insurer determines the death occurred during an activity covered by the exclusion, it may attempt to deny the claim.

Can an ERISA life insurance claim be denied because the employee did not meet the plan’s eligibility definition at the time of death?

Yes. Employer group life insurance plans governed by ERISA define eligibility based on factors such as hours worked or employment status. If the insurer claims those requirements were not met, it may deny the claim.

Can a FEGLI life insurance claim be disputed if multiple beneficiary designation forms are found in the employee’s file?

Yes. If more than one Federal Employees’ Group Life Insurance designation form exists, the insurer may review the records to determine which one controls.

Can an SGLI life insurance claim be delayed if the beneficiary designation names someone who cannot be located?

Yes. If the Servicemembers’ Group Life Insurance beneficiary cannot be found, the insurer may delay payment while attempting to locate or verify the proper recipient.

Can a VGLI life insurance claim be denied if the veteran never completed the enrollment process after leaving service?

Yes. Veterans’ Group Life Insurance requires a completed application after separation. If the veteran did not complete the process, 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 same life insurance proceeds or when someone challenges the validity of the beneficiary designation.

What happens when an insurer files an interpleader action in a life insurance case?

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 prior hospital testing?

Yes. If the insurer believes the insured did not disclose testing performed during a hospital visit 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?

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

Can a FEGLI claim lead to an interpleader lawsuit when multiple 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 signed under questionable circumstances?

Yes. If someone questions whether the designation form was validly 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 relatives?

Yes. 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 conduct?

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 listed in the insurer’s eligibility database?

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 valid?

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

Can an SGLI claim result in an interpleader action when several people claim 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 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.