Life Insurance Law Protects Insureds and Beneficiaries
Life insurance laws are in place to safeguard both the insured and their beneficiaries. Several provisions restrict what insurance companies can do and ensure they fulfill their obligations. For example, suicide exclusions may only be applied if the insured person commits suicide within the first one year of purchasing the policy.
Time Limits on Investigating Life Insurance Claims
Insurance companies are required by law to complete the investigation of a life insurance claim within 30 days of receiving notice. This period starts when the insurance company is notified about the claim, not necessarily when the death occurs or when the death certificate is issued. However, there are exceptions if the company can’t reasonably complete the investigation in this timeframe.
If the insurance company cannot make a determination within 30 days, they must provide written notice explaining why additional time is needed. This notice must also include specific reasons for the delay, not just a generic statement requesting more time. If the company fails to meet this requirement, it may be liable for interest on the funds that were unjustifiably withheld during the delay.
What to Do If You’re Facing a Delay
Many beneficiaries unknowingly accept delays from insurance companies because they aren’t aware of the legal requirements. If the insurance company continuously makes excuses or fails to communicate, you don’t have to accept it. You can challenge the delay and seek legal assistance to ensure your claim is processed in a timely manner.
If the insurance company is withholding payment or providing inadequate responses, it’s time to get in touch with an experienced life insurance attorney who specializes in handling denied claims and delayed benefits.
Life Insurance Claim Denials: Common Reasons
Life insurance claims are denied for many reasons—some valid, others not. The most common reason for dispute is a material misstatement made on the application. A material misstatement occurs when the insured provides inaccurate or misleading information during the application process.
Even an honest mistake can be considered a material misstatement if the information is relevant to the insured’s eligibility or life expectancy. However, insurance companies often deny claims based on misstatements that have no bearing on the insured’s insurability or the coverage eligibility.
How to Fight a Denied Claim
If your life insurance claim is denied, the key to securing the benefits due to you often lies in your response. Insurance companies know that many beneficiaries accept the denial without contest. If you simply accept the denial, the insurance company wins and doesn’t have to pay out the policy.
However, if you challenge the denial, especially with the help of an experienced attorney, your chances of receiving the benefits increase significantly. Insurance companies may be forced to pay the claim, and if they’ve acted in bad faith, they could be liable for additional damages.
Work With an Experienced Life Insurance Lawyer
If your life insurance claim has been denied or is delayed, do not hesitate to seek help. An experienced life insurance claims denial lawyer can help you navigate the complexities of life insurance law, whether the claim falls under state laws or an employer-sponsored plan governed by federal law.
Our firm has a strong track record of helping beneficiaries recover benefits after a claim denial or unreasonable delay. Schedule a free consultation today to discuss your case and start working toward a resolution.