Our life insurance law firm will share some prevalent types of life insurance claim denials:
In June 2015, the plaintiff’s husband obtained a $250,000 New York Life insurance policy and made her the sole beneficiary. He died in a car accident in November 2017, but New York Life refused to pay the claim, alleging that he had not revealed his alcohol abuse and DUI convictions on the application. The plaintiff filed a lawsuit against New York Life for breach of contract and bad faith, maintaining that her husband had been truthful and that the insurer had lost its right to challenge the policy after two years.
The plaintiff’s father was the owner of a $100,000 New York Life insurance policy that he bought in January 2014 and named her as the primary beneficiary. He suffered a heart attack and died in February 2016, but New York Life rejected the claim, asserting that he had concealed his medical history and smoking status on the application. The plaintiff sued New York Life for bad faith and breach of the incontestability clause, arguing that the insurer had acted unfairly and unlawfully.
In July 2013, the plaintiff’s mother bought a $50,000 New York Life insurance policy and designated her as the beneficiary. She passed away from cancer in August 2015, but New York Life refused to honor the claim, claiming that she had hidden her diagnosis and treatment on the application. The plaintiff filed a lawsuit against New York Life for breach of contract and bad faith, alleging that her mother had given all relevant information and that the insurer had mishandled the claim.
The plaintiff’s wife acquired a $150,000 New York Life insurance policy in April 2012 and made him the beneficiary. She died of a stroke in May 2014, but New York Life denied the claim, accusing her of lying about her blood pressure and cholesterol levels on the application. The plaintiff sued New York Life for breach of contract and bad faith, claiming that his wife had been honest and that the insurer had unjustly delayed and denied the claim.
In March 2011, the plaintiff’s son purchased a $75,000 New York Life insurance policy and named her as the beneficiary. He overdosed on drugs and died in April 2013, but New York Life rejected the claim, alleging that he had misrepresented his drug use and criminal record on the application. The plaintiff filed a lawsuit against New York Life for breach of contract and bad faith, asserting that her son had disclosed all pertinent information and that the insurer had acted in bad faith by rescinding the policy after two years.
The plaintiff’s husband bought a $200,000 New York Life insurance policy in February 2010 and designated her as the beneficiary. He suffered a heart attack and passed away in March 2012, but New York Life refused to pay the claim, stating that he had lied about his weight and family history on the application. The plaintiff sued New York Life for breach of contract and bad faith, alleging that her husband had provided accurate information and that the insurer had violated the incontestability clause.
In January 2009, the plaintiff’s father obtained a $125,000 New York Life insurance policy and made him the beneficiary. He died of lung cancer in February 2011, but New York Life denied the claim, alleging that he had not revealed his smoking habit and diagnosis on the application.
Free Consultation 800-330-2274