It’s more than just a hassle when your life insurance claim is denied. It can be confusing and frustrating, and it’s difficult to adjust without the amount of money you thought you’d be getting in the insurance payout. Life insurance companies purposely make the terms and conditions of their policies misleading, so it’s understandable that you may be in the dark about what is expected.
All life insurance and accidental death policies have restrictions and exclusions in which the insurance company is permitted to deny the processing of a claim. However, insurance companies still occasionally deny a life insurance policy that should have otherwise been approved. Illegal drug use is one of the reasons why an insurance company may refuse to pay a claim. You may be wondering if you life insurance claim can be denied because of marijuana use, especially since many states have recreational legalization.
It is possible that your life insurance claim could be denied due to marijuana use. Read on to learn more about this process. If you have questions about a life insurance policy and need to talk to an attorney about a claim or a denied claim, call McKennon Law Group as soon as possible and schedule a consultation. Our lawyers know how important it is to get this situation settled as soon as possible, so we make every effort to resolve the situation for you.
What Are The Reasons Why A Life Insurance Company Might Deny A Claim?
There are many reasons why a life insurance company might choose to deny a claim. Among these many reasons are the following:
Policy delinquency: One of the requirements of having a life insurance policy is that you pay the premium on time. If you fail to pay your premium, you could have a lapse in coverage. In other cases, sometimes the policy simply expires. This is considered policy delinquency.
Material misrepresentation: When applying for life insurance, you will be asked many questions about your assets. If you or the policyholder misrepresent your assets, this could get your life insurance claim denied. Material misrepresentations include being untruthful about how much money you make annually (your salary), failure to disclose information about another life insurance policy with another company, incorrect application information in general provided by the policyholder, failing to mention treatments for minor injuries or illnesses, and misrepresentation of immigration status
Out of scope scenarios: If the policyholder passes away due to suicide, or passes away while doing an illegal act, this could be considered an out-of-scope scenario, where the policy will not be considered valid.
What Can I Do If My Life Insurance Policy Was Denied Due To Marijuana Use?
In some cases, you might have problems claiming the life insurance policy if the insured person failed to disclose that they use marijuana for medical reasons when they applied originally for the life insurance policy. This may be considered material misrepresentation, depending on the insurance company, which could lead to a denied life insurance claim, especially if the insured died within the first two years of the policy issue date.
If this happens to you, it doesn’t necessarily mean that it is the end of the road. At McKennon Law Group, we have helped many Newport Beach residents file to appeal a denied claim. It’s frustrating and confusing when your claim gets denied, but our experts have the resources to help.
When you to a life insurance lawyer for assistance, you can show them the reason why your claim was denied, and provide your side of the story. We will do everything in our power to provide you with clear next steps for getting this matter resolved. In many cases, we can help you file for an appeal of the denied claim, giving you a second chance at getting the money you deserve.
Schedule A Free Consultation With A Newport Beach Life Insurance Lawyer If Your Policy Was Denied Due To Marijuana Use
With more than 70 years of experience, the attorneys at the McKennon Law Group PC in Newport Beach, California, have specialized in long-term disability and short-term disability insurance, life insurance, health insurance, accidental death insurance, and long-term care claims, as well as all types of ERISA litigation claims involving employee benefits, including group insurance claims, pension claims and severance claims.
With marijuana laws changing quickly across the nation, it’s difficult to understand what’s permitted. If you feel that your life insurance claim was wrongfully denied due to marijuana use, you should schedule a free consultation with a Newport Beach life insurance attorney today.
