The Common Disputes an Insurance Claim Attorney Can Help You With Have you had a valid life insurance claim declined in error? Many rely on life insurance to offer a safety net when a family member passes away. Unfortunately, this trust is misplaced since life insurance firms routinely fabricate reasons to postpone or deny legitimate claims. As a result, family members are left without the financial protection that a life insurance policy was supposed to give. This is where an Insurance Claim Attorney can help.
Interpleader When more than one individual claims to be entitled to life insurance benefits, the life insurance company will file an Interpleader, a particular sort of litigation. When faced with multiple claimants on the same policy, the life insurance company will attempt to deposit the policy proceeds in the court's bank account and then have the two rival claimants fight it out in court over who has the better claim to the policy amount. Bad-Faith Actions Bad faith insurance claims occur when an insurance company fails to treat the policyholder or beneficiary fairly and appropriately or when the firm fails to follow state regulations regarding claim management. The insurance company is responsible for providing the promised coverage as soon as possible. If the insurance provider fails to do so, you may be entitled to compensation in addition to the outstanding policy with the help of an Insurance Claim Attorney. Death During the Contestability Period The insurance company has the authority to dispute a life insurance policy if the policyholder dies within the first two years after it becomes effective. The term "contestability" refers to the
process of looking into the medical records and background of a dead insured. If the insurance company discovers facts not disclosed on the application when challenging the policy, it may refuse coverage. "Material misrepresentation" refers to any information that is deceptive or untrue. Policy Lapse Insurance companies frequently refuse claims due to lapse, and they also cite nonpayment of premiums as a justification to deny claims that should be paid. You have a right to know whether the insurance company issued premium-due reminders to the correct address and whether the communication alerted the insured of the imminent lapse as a beneficiary. The Policy Didn't Cover This Particular Form Of Death Every life insurance policy contains a list of exclusions that outline what the policy does and does not cover. Insurance firms carefully design these exclusions to cover a wide range of circumstances that they can use to refuse life insurance coverage. In Conclusion The fundamental goal of life insurance is to provide financial security to family members after a loved one passes away. On the other hand, a life insurance policy does not guarantee protection. Even if the contracts are lawful and legally binding, they are frequently riddled with loopholes that insurance firms use to avoid paying payments. Contact an Insurance Claim Attorney today if this has happened to you.