False Statements on Life Insurance Applications Can Lead to Denied Claims
When applying for life insurance, telling the truth isn’t just a suggestion—it’s a legal obligation. The life insurance application is a formal document that forms the foundation of your coverage. If an insurer later discovers false statements or omissions, it could result in a denied life insurance claim, especially if the discovery happens within the contestability period. At LifeInsuranceAttorney.com, our experienced life insurance lawyers fight denied claims arising from alleged false statements—and we win.
Material Misrepresentation: What It Means and Why It Matters
Material misrepresentation refers to any incorrect or omitted information that would have influenced the insurer’s decision to issue the policy or determine the risk class. Insurers rely on honest answers to assess whether to provide coverage and at what premium. If a life insurance company finds out the applicant withheld or falsified key information, it can argue the policy should never have been issued.
For example, if an applicant falsely states that they are a non-smoker but later dies of a smoking-related illness, and medical records reveal a history of tobacco use, the insurer will likely deny the claim. These denials aren’t limited to intentional fraud. Even minor errors or forgotten details can be used to avoid payment, especially during the contestability period.
Common Areas Where False Statements Occur
The most frequent misrepresentations on life insurance applications fall into a few key categories:
Health History: Undisclosed conditions like diabetes, heart disease, or cancer often lead to post-claim investigations. Even forgetting to mention a surgery or ER visit could trigger a claim denial.
Lifestyle Choices: Misstatements about smoking, alcohol use, or high-risk hobbies like skydiving or scuba diving are heavily scrutinized.
Criminal Records: If the application asks about past convictions and the applicant fails to answer truthfully, the policy may be voided.
Financial Information: Though less common, misstating income or assets can lead to denial. Life insurance companies sometimes evaluate financial need to guard against overinsurance or potential fraud.
Our law firm has handled denied claims involving every major insurer, including Globe Life, Banner Life, Colonial Life, and CUNA Mutual. We know how to challenge wrongful denials and prove that alleged misstatements were immaterial or irrelevant to the cause of death.
The Contestability Period and Why It’s So Critical
Most life insurance policies include a contestability clause, which gives insurers the right to investigate the accuracy of an application within the first two years after issuance. If the insured dies during this period, the insurance company will review the application, medical records, and other documents to determine if false information played a role in securing the policy.
This means even small oversights—such as failing to disclose a chronic illness or exaggerating health status—can be grounds for claim denial. For example, if someone applies for life insurance and declares they are in excellent health, then dies within a year, the insurer will likely launch a deep review of medical history. Any discrepancies between the application and medical records could result in rescission of the policy.
Intent Doesn’t Always Matter
Many people assume that only intentional lies will result in claim denials, but that’s not how the law works. Even accidental omissions or innocent mistakes can be used against beneficiaries. That’s why it’s so important to fight back with an experienced attorney who understands how to challenge the insurer’s reasoning.
Our attorneys have successfully resolved denied claims even when the insurer alleged that the insured misrepresented something material. We’ve challenged the definition of "material," proven that the misrepresentation had no bearing on the cause of death, and fought for full recovery for our clients. Whether the insurer is claiming fraud or simple error, we are equipped to handle the case.
Denied Claims Due to False Statements: How We Win
If your loved one’s life insurance claim was denied due to an alleged misrepresentation, don’t assume the denial is final. Many insurers overreach, denying claims they should pay by citing misstatements that are irrelevant or improperly investigated. Our firm evaluates:
Whether the supposed misstatement was actually material
If the insurer completed proper underwriting at the time of application
Whether the alleged omission was even factually incorrect
If the claim was denied based on an unrelated cause of death
We’ve fought back and recovered benefits from insurers like Globe Life, Banner Life, Colonial Life, and CUNA Life. We know their tactics—and how to beat them. If you need help with a denied life insurance claim in Tennessee call us.
FAQ About Denied Life Insurance Claims Due to False Statements
What is a material misrepresentation on a life insurance application?
A material misrepresentation is a false or omitted statement that would have affected the insurer’s decision to issue the policy or set the premium. These can lead to denied claims, especially if discovered within the contestability period.
Can an honest mistake still result in a denied life insurance claim?
Yes. Even unintentional errors, such as forgetting to disclose a past medical treatment, can lead to claim denial if the insurer believes it was relevant to underwriting.
What is the contestability period in a life insurance policy?
It’s typically a two-year window from the policy’s start date during which the insurer can review the application for inaccuracies. If the insured dies during this period, the claim is closely scrutinized.
Can a claim be denied after the contestability period ends?
It’s much harder. After two years, insurers must usually pay the claim unless they can prove fraud. But most misrepresentation-related denials occur within the contestability period.
Does failing to disclose criminal history affect a life insurance claim?
Yes. If the application includes questions about criminal records and they’re answered falsely or omitted, it could lead to claim denial under material misrepresentation rules.
How do insurers find out if an application was inaccurate?
They review medical records, pharmacy data, and other documentation after the insured’s death—especially if it occurs during the contestability period.
What happens if the misrepresentation didn’t relate to the cause of death?
That can strengthen your case. For example, if someone failed to disclose a back injury but died from cancer, the misrepresentation may be irrelevant. Our attorneys argue these points to overturn denials.
Can a beneficiary fight a denied claim due to false statements?
Absolutely. With the help of a life insurance lawyer, beneficiaries can challenge the insurer’s interpretation, present medical evidence, and argue the misrepresentation was immaterial or unintentional.
What if the insurer rescinded the policy?
Rescission is when the insurer cancels the policy retroactively due to misrepresentation. Even in these cases, we’ve successfully fought to reinstate policies or reach favorable settlements.
Which life insurance companies deny claims over false statements?
We’ve handled these cases against nearly every major provider, including Globe Life, Colonial Life, Banner Life, CUNA Mutual, and many others.