Life Insurance Lawyer North Carolina

"Life Insurance Lawyers Serving North Carolina: The Lassen Law Firm" Life insurance claims in North Carolina can present unique challenges, especially when dealing with denied payouts or bad faith insurance practices. At The Lassen Law Firm, we are dedicated to helping individuals and families across the Tar Heel State recover the benefits they rightfully deserve. Whether you’re in Charlotte, Raleigh, Greensboro, Durham, or any other part of North Carolina, we provide trusted legal expertise and personalized support.

As experienced life insurance attorneys handling cases nationwide, including North Carolina, we’ve successfully recovered over $750 million in policies for our clients. At The Lassen Law Firm, we combine dedication, knowledge, and relentless advocacy to ensure justice for every client.

Life insurance claims in North Carolina can be a complicated and contentious process, especially when a claim is denied. While the most common reasons for denial, such as unpaid premiums or causes of death falling outside policy terms, are well-known, there are other, less common grounds for rejection that beneficiaries may not anticipate. Insurers such as AIG, Banner Life, and Lincoln Financial are among those that may deny claims for reasons that involve more intricate policy details, conditions of coverage, and legal complications. One particularly frustrating aspect of the process is when beneficiaries face delays or denials due to beneficiary disputes or life insurance interpleader lawsuits.

One of the more obscure reasons for a claim denial in North Carolina involves the "lapse in coverage" due to miscommunication or errors during the policy renewal process. Companies like MassMutual, Foresters, and Reliastar might deny claims because they argue that a lapse in coverage occurred, even though the policyholder may have made payments or believed that the policy was active. For instance, if the insurer fails to notify the policyholder of an impending premium due date, or if there is an issue with how premiums were applied (e.g., an incorrect automatic payment), the company may argue that the policy lapsed before the death occurred. This reason for denial can be particularly frustrating because it hinges on administrative errors or lack of clarity about when the premium payments were properly applied.

Another rare but significant reason for denial involves "policy exclusions for specific conditions or causes of death" that beneficiaries might overlook when they purchase coverage. While most policies exclude coverage for death caused by suicide within a certain time frame (usually two years), less obvious exclusions can lead to denials as well. For example, companies like Transamerica, Symetra, and Protective may have specific exclusions for deaths related to high-risk occupations, certain medical conditions, or even natural causes that are considered outside the scope of typical life insurance policies. If a policyholder dies from a condition that the insurer believes was not adequately disclosed on the application, the company may use that as a basis to deny the claim. This becomes especially challenging when the cause of death seems unrelated to the condition in question, leading to lengthy and contentious disputes.

An unusual reason for denial that many beneficiaries in North Carolina might not expect involves "insufficient documentation or proof of death." Insurers like New York Life, Reliance Standard, and Prudential sometimes require an official death certificate to process the claim, and any issues with this document—such as errors or discrepancies in the cause of death—can lead to delays or outright denials. For instance, if the death certificate does not clearly state the cause of death, or if there is a disagreement between the attending physician’s report and the official documentation, the insurer may request additional paperwork or may deny the claim outright. This can lead to significant delays as beneficiaries scramble to provide the necessary paperwork, or in some cases, even to a refusal to process the claim altogether.

In other instances, an insurer may deny a claim due to what is known as a "contestability clause." Life insurance policies from companies like Allianz, State Farm, and Securian Financial often have a contestability period, which is typically two years from the issuance of the policy. During this period, the insurer has the right to investigate the application and refuse a claim if they find any misrepresentation, even if the misrepresentation seems insignificant. For example, if the policyholder unintentionally left out minor health conditions, like a past cold or flu, insurers might use that as grounds for denial, even if the cause of death had nothing to do with the omitted information. This clause allows insurers to reject claims if the policyholder made any misstatements on their application, even if those misstatements weren’t related to the cause of death.

In some cases, North Carolina beneficiaries face claim denials that arise from "non-payment due to policyholder's changing financial situation." For instance, insurers such as MetLife, Hartford Life, and Globe Life may refuse to pay out claims if they determine that the policyholder made changes to their payment plan or premium amount without adhering to proper procedures. A common issue arises when a policyholder transitions between different types of policies, such as from term life to whole life insurance, and fails to follow through with the necessary steps to update their coverage. The insurer may argue that the coverage was not properly adjusted, and thus they deny the claim due to a lapse in the policy's terms. This situation can be complex, as it often requires a careful review of the policyholder’s payment history and communications with the insurance provider.

Beneficiary disputes also play a significant role in the denial process, particularly when multiple parties claim to be the rightful recipient of the death benefit. Insurers like Jackson Life, Guardian, and Erie often find themselves caught in the middle of these disputes, which can arise when there is a lack of clarity or documentation regarding the policyholder’s intentions. For example, if a policyholder names a spouse as the beneficiary but later changes it to a child, and the spouse claims that the change was made under duress, the insurer might be forced to hold off on processing the claim until the issue is resolved. In situations like this, the insurance company might file an interpleader lawsuit in order to deposit the disputed funds with the court and allow a judge to determine the rightful beneficiary. This process can be time-consuming and costly, as the involved parties will have to present evidence and legal arguments to settle the matter.

An interpleader lawsuit is a legal action taken by life insurance companies such as Farmers, Globe, or CUNA Mutual to avoid paying out a claim to the wrong beneficiary. When an insurer is faced with conflicting claims over who should receive the death benefit, the company can file an interpleader lawsuit to have the court decide who is entitled to the money. Although this is done to protect the insurance company from liability, it can result in significant delays for beneficiaries, sometimes extending the waiting period for payout by months or even years. The outcome of an interpleader lawsuit is entirely dependent on the court’s interpretation of the policyholder’s intent, which is often based on the evidence provided by the parties involved, including previous beneficiary designations, wills, and statements made by the deceased.

A more surprising reason for denial involves situations where a life insurance policyholder might have been "ineligible for coverage" without the insurer’s knowledge. For example, an individual who had a history of unreported criminal activity or illegal drug use might be denied coverage if the insurance company discovers that this information was concealed during the application process. Insurance companies like Lincoln Heritage, Pekin, and MetLife may discover such information during an investigation following the policyholder’s death, and they may use that as grounds for rejecting the claim. While this type of denial is less common, it can have devastating effects on beneficiaries, especially if they are unaware of the policyholder’s past actions.

Understanding why a life insurance claim might be denied is important for beneficiaries in North Carolina, as it helps them navigate the claims process more effectively. While many reasons for denials are common knowledge—like missed premium payments or exclusions for certain causes of death—less obvious grounds such as contestability clauses, insufficient documentation, or beneficiary disputes can also lead to complications. When beneficiaries find themselves facing a denial, it’s important to explore all available avenues for contesting the decision, including legal action, and to understand the potential implications of interpleader lawsuits and other legal disputes. In many cases, working with an experienced attorney can make a significant difference in resolving complex claim denials and ensuring that the rightful beneficiaries receive the benefits they are owed.

Questions about life insurance claims in NC

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

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

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

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

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

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

Why would an accidental death & dismemberment life insurance claim in North Carolina 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 North Carolina?

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 North Carolina?

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

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

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 North Carolina?

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 North Carolina?

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 North Carolina state law?

There are many exceptions to denials based on North Carolina state law.

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

These North Carolina life insurance companies deny many claims: Brighthouse Financial in Charlotte, and Lincoln Financial in Greensboro.

2025 North Carolina Denied Life Insurance Claims

  • MetLife death due to COVID-19 denial $506,000.00
  • Global Atlantic material misrepresentation $25,000.00
  • Colonial Life coronavirus death rejection $103,000.00
  • Accidental Death & Dismemberment alcohol $575,000.00
  • Lincoln Heritage wrong age on application $48,000.00
  • Illinois Mutual Life lapse of policy we resolved $106,000.00
  • SGLI claim beneficiary form not accepted $408,749.00
  • iA Financial Life doctor visits in medical records $33,000.00
  • Mass shooting North Carolina life claim denial $410,000.00
  • Ladder Life suicide exclusion and drugs $55,000.00
  • AD&D denial due to intoxication exclusion $39,000.00
  • Reliance Standard interpleader lawsuit $319,000.00
  • Aviva material misrepresentation case $106,000.00
  • Lincoln Heritage alcohol exclusion issue $215,300.00
  • Globe invalid beneficiary designation $103,900.00
  • North Carolina denied life insurance claim $2,639,000.00
  • AIG AD&D accidental death & dismemberment $404,700.00
  • Genworth drug overdose exclusion resolved $258,000.00
  • Denied life insurance claim North Carolina $1,073,500.00
  • Mass Mutual felony exclusion problem $413,000.00
  • Liberty suspicious circumstances death $342,000.00
  • SGLI issue beneficiary designation $400,000.00
  • Unum disease not listed on application $513,000.00
  • ERISA appeal of denial that we won $138,000.00
  • North Carolina divorce and life insurance $500,000.00
  • Gerber ambiguous language policy issue $230,000.00
  • Banner autoerotic asphyxiation injury $309,000.00
  • North Carolina bad faith life insurance $721,000.00