Denied life insurance claims can cause significant distress for the families of the deceased, especially when an insurer refuses to pay out due to paperwork issues or medical history discrepancies. A case in New Mexico involving two state employees highlights the complex issues surrounding life insurance claims and the potential pitfalls that can lead to a denial.
The state of New Mexico is currently battling with an Oregon-based life insurance company that has denied payments to the families of two deceased workers. The insurer claims that the lack of medical history forms in the employees' files prevents them from making the death benefit payout. Despite the insurance company’s refusal, the state’s General Services Department stepped in and provided $55,000 to each family to ensure they received some compensation.
The insurer's failure to provide payment due to paperwork issues, particularly regarding medical history forms, has led New Mexico state officials to consider terminating their contract with the company. As a result, they are reviewing the records of other workers to ensure that there are no other cases of missing documents or paperwork that could delay future claims.
This situation underscores the importance of keeping proper documentation when applying for life insurance. Life insurance policies are often contingent on the completeness and accuracy of information provided by the insured, and missing forms or inaccurate medical histories can lead to claim denials. In some cases, insurers may argue that an omission or error in the application process affects the validity of the claim, even if the beneficiary is legally entitled to the benefits.
What You Can Do If Your Life Insurance Claim Is Denied
If your life insurance claim has been denied due to issues like missing medical history forms or other documentation errors, you don’t have to accept the decision. Here are some steps you can take:
Review Your Policy and Denial Letter: Carefully examine the reasons for the denial as outlined in the insurer’s letter. If the denial is based on a documentation issue, confirm that all necessary paperwork was submitted.
Gather Supporting Evidence: If the insurer claims that there was a medical history issue, gather medical records and other documents to show that you provided accurate information. In cases where paperwork was lost or overlooked, attempt to recover the missing documentation from medical providers or your employer.
Appeal the Denial: Many life insurance policies offer an appeals process. If your claim is denied, use this process to present your case and provide any additional information or evidence that may change the insurer’s decision.
Seek Legal Help: If you’re facing a life insurance claim denial, especially in complex cases like medical history or missing documents, it’s advisable to consult with a life insurance lawyer. An experienced attorney can help you navigate the appeal process and take legal action if necessary to secure the death benefits that you’re owed.
Why You Need Legal Representation in Denied Life Insurance Cases
Life insurance companies may try to deny your claim for various reasons, including misinterpretations of policy terms or clerical errors. In cases like the one in New Mexico, where missing medical history forms can derail a claim, a life insurance lawyer can help ensure that your claim is fully investigated and that all proper documentation is submitted. Additionally, if the insurer is acting in bad faith or unlawfully denying your claim, an attorney can help you pursue legal action and potentially recover damages.
Don’t let a denied life insurance claim cause unnecessary stress for your family during an already difficult time. Our life insurance lawyers specialize in helping families fight for the benefits they deserve. If your claim has been denied, contact us for assistance in securing your rightful payout.
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