Life insurance claims with respect to prescription drugs can be denied for various reasons. Here are two scenarios our life insurance law firm has seen that could lead to claim denial:
Non-Disclosure or Misrepresentation of Drug Use:
If the policyholder failed to disclose their use of certain prescription or nonprescription drugs or provided inaccurate information during the application process, it could result in a claim denial. Insurers rely on accurate health information to assess risk and determine premiums. If the policyholder deliberately conceals their use of specific medications, especially those with potential health risks, the insurer may consider it as a material misrepresentation. Most of the life insurance claimi denials our firm sees has to do with misrepresentations on the initial application.
Drug-Related Causes of Death:
If the insured person dies as a result of drug abuse or an overdose, and it's proven that the drug use was not disclosed or misrepresented in the application, the insurer may deny the claim. Some policies have exclusions or limitations related to drug-related deaths, especially if the drug use is considered high-risk.
Regarding Narcan, it is essential to note that Narcan (naloxone) is an opioid antagonist used to reverse opioid overdoses. If someone has a history of opioid use or has been prescribed Narcan, it may impact the life insurance claim in certain situations:
1. Opioid Use and Overdose:
If the insured person has a history of opioid use or has been prescribed Narcan due to opioid dependence, and the cause of death is determined to be an opioid overdose, the insurer most certainly will investigate whether this information was accurately disclosed on the application. If there were misrepresentations or non-disclosures related to opioid use, the claim will be denied.
2. Exclusions for High-Risk Medications:
Some life insurance policies may have exclusions or limitations related to specific medications, especially those considered high-risk. If Narcan is listed as an excluded medication in the policy, or if opioid use is excluded, the claim will be denied.
The bottom line is that it is essential for applicants to provide accurate and complete information during the life insurance application process. Failure to do so could lead to a claim denial. Our law firm handles all denied life insurance claims as well as beneficiary disputes and interpleader lawsuits. We handle all accidental death and dismemberment (AD&D) claims as well as all denied FEGLI claims.