Protecting Yourself from Life Insurance Misrepresentation Claims

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Life Insurance Companies

The business of life insurance companies is to make a profit. Which is why they will try to avoid paying out large life insurance policies by search for any reason to deny the claim. The main way they are able to deny your claim is by accusing you, or a loved one, of making a misrepresentation on the life insurance application.

Tactics Used by Insurance Companies

Life insurance companies will use many tactics to back out of paying a claim. Mainly they use: accusations of misrepresentation, the contestability period, and outright cancel the policy for failure of payment.

Accusations

The most common accusations made by life insurance companies to deny a claim are as listed:

  • Occupation
  • Employment History
  • Age
  • Income
  • Tobacco/Alcohol Use
  • Assets
  • Additional Insurance Policies
  • Dangerous Hobbies

These accusations are pretty vague and fall under broad territory. This is exactly why companies are able to get away with backing-out of claims because the language in the application can be misleading. A good rule of thumb for this is to ask specific questions as to what each mean and get a lawyer to look over the policy.

Contestability Period

If a loved one passes away during the time referred to as the “contestability period”, which is the time where an insurance policy is supposed to be reviewing your paperwork in order to determine if they will grant you coverage. At this time, the company will launch an investigation to determine whether or not misrepresentation were made on their applications.

Cancellation of Policy

Cancelling your policy after the insured person passes away due to failure of payment is another way the insurance company gets out of paying. Which is why one must be meticulous when it comes to paying your monthly fee.

Life Insurance Misrepresentation Protection in Los Angeles

If you have found yourself being denied a life insurance claim then it is time to hire legal counsel. An insurance company who specialize in representing those who are wrongly accused of misrepresentation. The Law Offices of James T. Hudson can help you disprove the false accusations made by insurance companies. For a consultation, contact our office at (213)386-2747.

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