Life Insurance Lawyer Maryland

"Life Insurance Lawyers Serving Maryland: The Lassen Law Firm" Life insurance claims in Maryland can be challenging, especially when dealing with denied payouts or bad faith practices. At The Lassen Law Firm, we are here to fight for individuals and families across the Old Line State, ensuring they recover the benefits they rightfully deserve. Whether you’re in Baltimore, Annapolis, Rockville, Silver Spring, or anywhere else in Maryland, we provide trusted legal expertise tailored to your needs.

As life insurance attorneys handling cases nationwide, including Maryland, we have recovered over $750 million in policies for our clients. At The Lassen Law Firm, we combine deep experience, relentless advocacy, and personalized care to deliver justice for our clients.

In Maryland, life insurance plays a pivotal role in providing financial security for families in the event of an untimely death. However, there are times when life insurance claims are denied, and the reasons behind these denials can be more complex than most policyholders realize. While many people are aware of common reasons like missed premium payments or failure to disclose pre-existing conditions, there are other, less commonly discussed reasons why a claim may be denied. Insurers such as Symetra, AIG, and Transamerica may refuse to honor a claim based on certain clauses or conditions that policyholders might not fully understand. Additionally, disputes over who should receive the death benefit can lead to significant delays in payouts, as well as the need for life insurance interpleader lawsuits.

One lesser-known reason for claim denial in Maryland involves the “material misrepresentation” of the insured’s lifestyle or occupation. While most individuals are aware that they must accurately disclose their medical history on the life insurance application, they may not realize the extent to which insurers investigate their occupation or personal activities. For instance, life insurance companies like Prudential, Nationwide, and MetLife could deny a claim if they find that the insured failed to disclose a high-risk occupation or dangerous hobbies, such as skydiving, rock climbing, or working in hazardous conditions like mining or construction. These activities, which may seem harmless or routine to the policyholder, can significantly increase the risk of injury or death, making them material to the insurer's decision to issue the policy in the first place. If the insured dies in an accident related to one of these activities, the insurance company could argue that they were never informed about the risk involved, and therefore, the claim should be denied. Even if the death seems unrelated to the disclosed occupation or activity, the insurer may use the failure to disclose these risks as grounds to reject the claim.

Another less common reason for a life insurance claim denial in Maryland is due to the “suicide clause” in many policies. While most people are familiar with the fact that life insurance will not pay out if the insured dies by suicide within the first two years of the policy, the specifics of how insurers handle these claims can be more nuanced. For example, companies like Lincoln Heritage, Reliastar, and Hartford Life may continue to investigate a death even if the suicide occurs after the contestability period, particularly if there are reasons to believe that the insured was in a mental health crisis at the time of death. If the insurer determines that the individual was mentally incapacitated or that the death was linked to a pre-existing mental health issue that wasn’t fully disclosed on the policy application, they may still contest the claim. Even if the insured’s death was ruled a suicide after the two-year period, the insurance company might argue that the insured's mental health conditions significantly contributed to the cause of death. This situation can lead to delays, denials, and extensive legal battles, leaving the beneficiaries in a difficult position as they try to secure the financial support they need.

In some cases, life insurance companies may deny claims based on a “criminal activity exclusion.” Life insurance policies, particularly those issued by insurers like USAA, Lincoln Financial, and Securian, often include clauses that exclude coverage for deaths caused by illegal activities. For example, if an insured person dies while committing a crime, such as engaging in a robbery or other unlawful activities, the insurance company may argue that the policy should not cover the death because it occurred while the insured was participating in criminal conduct. This can be a contentious issue, especially if the circumstances surrounding the death aren’t immediately clear. A policyholder could have been involved in a criminal event that led to their death, even if the death appeared accidental, and this could lead the insurer to contest the claim. Insurers may also deny claims if the insured had a history of criminal behavior that wasn’t disclosed during the application process. This clause can create a particularly difficult situation for beneficiaries who may be left without the life insurance proceeds due to the insured’s involvement in illegal activities that were not previously disclosed.

Another reason that might not be immediately obvious to policyholders in Maryland involves the “failure to notify” clause. Many life insurance policies contain requirements about notifying the insurer of certain changes to the policyholder’s circumstances, such as a change of address, change of beneficiary, or significant health changes. Insurers like MetLife, Globe Life, and Reliance Standard could deny a claim if they can prove that the policyholder failed to inform them of such changes. For instance, if the insured changes their beneficiary and does not notify the insurance company in writing, or if a policyholder moves to a different state and does not update their address with the insurer, these issues could result in a denied claim. While this may seem like a minor detail, it could have serious implications for beneficiaries who find themselves unable to receive the death benefit. Even if the insurer has no reason to believe that the change in circumstances directly caused the insured’s death, the lack of notification could still give them grounds to reject the claim, forcing the beneficiaries to navigate the complicated process of proving that they were entitled to the payout.

Perhaps one of the most difficult situations arises when there are disputes between beneficiaries. Even when a life insurance policy is clearly written, disputes can occur over who should receive the death benefit. These disputes can happen if the policyholder did not update their beneficiary designation after a significant life change, such as a divorce, remarriage, or the birth of children. In Maryland, disputes between beneficiaries are not uncommon, especially when family members or other parties have conflicting claims. An ex-spouse may claim entitlement to the benefits, arguing that they are still the rightful beneficiary, or siblings may dispute the terms if the policyholder never clearly communicated their intentions. In these cases, life insurance companies like Symetra, Securian, and American General may be caught in the middle and unable to resolve the situation without legal intervention. The insurer may decide to file an interpleader lawsuit, which is a legal process used to resolve the issue when multiple parties are competing for the benefits. The insurer essentially asks the court to decide who the rightful beneficiary is. While this protects the insurance company from liability, it can leave the beneficiaries waiting months or even years for a resolution, during which time they may be relying on the death benefit to cover expenses.

Life insurance interpleader lawsuits are relatively rare but not unheard of in Maryland. If there are conflicting claims from multiple parties, companies such as Transamerica, Lincoln Financial, and AIG may file an interpleader action to resolve the dispute. The insurer essentially deposits the death benefit into the court’s custody and asks the judge to determine which claimant is entitled to the funds. While the intention is to avoid further complicating the situation, these lawsuits can significantly delay the payout, often creating more tension among family members who are already grieving the loss of a loved one. If the interpleader lawsuit drags on, it can prolong the financial uncertainty and strain the relationships between family members who were once in agreement about the distribution of the proceeds.

In some cases, the insurer may also conduct an extensive investigation into the insured's activities leading up to their death, particularly if the insured was involved in risky activities or had an unconventional occupation. If a life insurance policyholder was, for example, a pilot or someone involved in extreme sports, insurers like Nationwide, Banner Life, and State Farm might investigate whether the insured disclosed these activities accurately during the application process. If the insurer determines that the insured’s occupation or activities significantly increased the risk of death, and that information was not disclosed, the claim could be denied on the basis of non-disclosure or misrepresentation.

Questions about life insurance claims in Maryland

What do I do if my life insurance claim in Maryland was denied?

You need to a top Maryland life insurance lawyer to represent you.

What do I do If I was served with a life insurance interpleader lawsuit in Maryland?

You don't want to jeopardize your case, so you'll need a top Maryland life insurance attorney for representation.

What do I do if I have a life insurance beneficiary dispute in Maryland?

Our top Maryland life insurance law firm can represent you with respect to your beneficiary dispute.

Why would an accidental death & dismemberment life insurance claim in Maryland be denied?

An AD&D life insurance claim is typically denied either because the death was caused by a medical event not an accident, or that there was alcohol involved which is typically an exclusion in the policy.

Can policy lapse be a reason for a denied life insurance claim in Maryland?

Yes, but the lapse can be contested by our life insurance attorneys.

Is alleged misrepresentation on a life insurance application a reason for a denied life insurance claim in Maryland?

Yes, but our life law firm can dispute the misrepresentation.

Can an alcohol exclusion be a reason for a denied life insurance claim in Maryland?

Yes, but there are ways a life insurance lawyer can dispute this.

What do I do about a bad faith ERISA life insurance denial of death benefits in Maryland?

As you only have one appeal, best to have our lawyers resolve it.

What should I do about a life insurance contestability period claim denial in Maryland?

You should always get legal representation as any denial can be contested.

What do I do if I get a denial letter for my life insurance claim stating it was denied due to Maryland state law?

There are many exceptions to denials based on Maryland state law.

What are the worst life insurance companies in Maryland for paying claims?

These Maryland life insurance companies deny many claims: Baltimore Life Insurance.

2025 Maryland Denied Life Insurance Claims

Mass shooting Maryland death denial $139,000.00
Lincoln Memorial sickness exclusion $52,000.00
Accidental Death & Dismemberment claim $204,000.00
Global Life felony exclusion case $102,000.00
SGLI claim denial beneficiary change $408,200.00
Kentucky Central Life alcohol exclusion $55,000.00
First National Life fentanyl exclusion $122,000.00
AD&D denial due to alcohol and drugs $583,000.00
London Pacific lapse in payment we won $75,000.00
Monarch Life interpleader lawsuit won $211,000.00
Universe Life COVID-19 exclusion we fought $349,000.00
Genworth beneficiary dispute interpleader $312,750.00
Penn Treaty Life denial of benefits exclusion $509,300.00
Denied SGLI claim two beneficiaries disputing $405,290.00
Prudential nonpayment of premium lapse $258,200.00
Security National alcohol exclusion denial $113,000.00
Summit National beneficiary issue resolved $227,000.00
American General material misrepresentation $422,500.00
Denied FEGLI claim due to exclusion $401,200.00
Lincoln National suicide exclusion $104,300.00
Maryland denied life insurance claim $1,759,250.00
Unison International denial life insurance claim $501,800.00
Denied AD&D claim self-inflicted injury $502,900.00
American change of beneficiary $314,820.00
Pioneer divorce and ex-spouse $175,300.00
AIG accidental death AD&D claim $516,900.00
Northwestern Mutual lapse of policy $150,000.00
United Republic Life denied claim $212,000.00
Denial of Accidental Death & Dismemberment 870,000.00
Banner prescription drug exclusion $106,000.00
Transamerica autoerotic asphyxiation $224,600.00
Cigna dispute among beneficiaries $317,100.00
Denied life insurance claim Maryland $752,630.00
Bankers denial of life benefits won $116,000.00