Was your life insurance claim denied in California? There are many reasons why a life insurance company might deny a claim. As Newport Beach life insurance lawyers, we commonly see cases that claim the insured individual made material misrepresentations on their life insurance application. When insurance companies believe an insurer misrepresented themselves on a claim, they have the right to deny the payout.
A denied claim is not the end of the road. It is important to remember that with any denied claim, you have the right to file an appeal and try again to get the life insurance money paid out, and what the insurance company claims is not concrete. You can always fight back against their accusations with the help of a lawyer.
Read on to learn more about life insurance claims that were denied due to alleged material misrepresentation. If you or a loved one are missing out on money that you rightfully deserve because of supposed material misrepresentation, don’t assume you are out of luck, and contact a Newport beach life insurance lawyer to help handle it.
How Do Insurance Companies Deny Material Misrepresentation?
When someone takes out a life insurance policy, they must first apply for consideration. On this application, they will be asked important questions. Among thee questions are:
- Smoking and use of tobacco, if any
- Whether or not you use of marijuana or other recreational drugs
- Any medical diagnosis you have received, recently or in the past
- Any use of prescription medications, recently or in the past
- Any previous or current treatments you’re receiving or expected to receive
- History of medical procedures you’ve had in the past, including surgeries
Insurance companies use your answers to these questions to assess and evaluate how much risk they are taking on by insuring you. The answers to these questions will also establish the premium (how much you pay for the coverage). For this reason, some people are apparently tempted to provide false information on their application.
Material misrepresentation is “a false or misleading statement or a material omission which renders other statements misleading, with intent to deceive. Misrepresentation is one the elements of common insurance law fraud, and other causes of action for fraud, such as securities fraud.” Those who misrepresent information on their application may see their life insurance benefits get denied–but sometimes insurance companies deny benefits when no misrepresentation occurred.
What Are Other Reasons That Life Insurance Benefits Are Often Denied
There are many other reasons why an insurance company may deny a claim. Here’s an example of one commonly occurring scenario. If the insured individual passed away within the first two years that the life insurance policy was effective, the insurance company holds the right to contest the pay out.
In other cases, you may hear of insurance companies investigating the death of an insured person to ensure that the death was legitimate and that there was no foul play involved in order to cash out the policy.
What Is A Contestability Period
There is a two year window in which an insured individual holds the right to contest, or oppose, the denial of an insurance claim. This window of time is referred to as the contestability period. The insurance company uses this time to check the medical records of the insured person to make sure they provided truthful answers–in other words to ensure no material misrepresentation occurred. If, during this investigation period, the insurance company discovered untruths, they do have the right to deny paying out the life insurance claim.
Schedule A Free Consultation With A Newport Beach Insurance Attorney If Your Life Insurance Claim Was Denied Due To Material Misrepresentation
When you need an attorney to aggressively fight your insurance company, choosing the right law firm is the most important decision you will make. As Newport Beach insurance attorneys, we have seen many California residences get their life insurance claims wrongfully denied due to material misrepresentations. Accidents happen, and sometimes insurance companies do make mistake when the deny paying out certain claims
McKennon Law Group PC maintains offices throughout California, allowing us to serve you anywhere in the state, including the metropolitan areas of Los Angeles, Orange County, San Diego, San Francisco and the Central Valley. Our lawyers also represent insured policyholders nationwide. No matter what your situation is, our insurance attorneys have the experience to fight back against a denied claim and will always make sure you’re not being taken advantage of by your insurance company.
Schedule your free life insurance case evaluation with McKennon Law Group PC today.