About Life Insurance Claims Denials
There are specific rules that cover the payment of benefits for life and disability insurance policies. Generally, in life and disability policies, the insurance company cannot contest the payment of benefits, if the policy has been in effect for at least two years. However, if the policy has not been in effect for at least two years, life and disability carriers will attempt to rescind the policy by contending that the insured made material misrepresentations in their insurance policy. This process is called “post-claims underwriting,” which is disfavored by the law. If you are dealing with the rescission of your policy, we may be able to help you. If the person dies after the life insurance policy has been in effect for at least two years, it would be a rare situation where the insurance company did not pay this claim.
However, a disability carrier may still deny a claim after a policy has been in effect for two years by claiming that the insured is not actually disabled. The carrier will challenge the findings by the insured’s own doctor regarding the disability. We have handled both rescission cases and cases involving a dispute regarding the extent of the disability.