It should go without saying that when a life insurance company denies a claim for life insurance benefits that it compounds an already bad situation. This coverage was purchased to help the beneficiary in case the insured died. The vast majority of the time, the beneficiary, usually a spouse and kids, needs the financial help the life insurance was intended to supply. Now, the beneficiary not only is denied coverage, but is forced into a legal situation that they did not wish to find themselves involved in.
This law office handles life insurance claims more than any other type of case. We do not handle criminal cases, family law cases, probate, bankruptcy, etc. We handle claims that insurance companies deny and we litigate for the benefits that should be provided. There are very few offices, if any, that handle more life insurance cases than we do. Most life insurance cases end up in a Federal Court, and unlike the vast majority of attorneys in Texas, we are authorized to practice law in all the Federal Courts in Texas.Why Do Life Insurance Companies Deny Claims
Here is a list of many reasons why life insurance companies deny claims:
*The biggest reason is the assertion by the insurance company that the insured misrepresented their medical history in the application for life insurance.
*They claim the cause of death is excluded under the policy. This includes reasons such as:
- the death was caused by or contributed to because of alcohol or an illegal drug
- the death was caused by suicide
- the death was caused by engaging in excluded behavior
- the death, when it policy is an accidental death policy, was not caused by an accident, rather it was caused by a health condition or disease
*The life insurance company is unsure who is entitled to the life insurance benefits because there has been a divorce, there is a death of the named beneficiary, the name of the named beneficiary is hard to read, there was an attempt to change a beneficiary but it is not clear, there is not a named beneficiary, etc.
*The life insurance company claiming the policy was cancelled due to non-payment of premiums
*There are other reasons, but any reason for denial is a reason to check with an attorney who is experienced in dealing with life insurance claim denials.Question: What can be Done When a Life Insurance Company Denies a Claim?
Answer: Call An Experienced Life Insurance Lawyer!
Maybe that answer seems too easy coming from a lawyer who Is An Experienced Life Insurance Lawyer, but it is the truthful and correct answer.
In 99% of the life insurance claims that are denied by a life insurance company, there is a recovery that can be had if the life insurance lawyer only knows what to do.
There are many elements that go into whether or not a recovery can be made after the claim is denied:
- What is/are the stated reason/s for denial?
- What does the policy say?
- What do the insurance statutes say?
- What are the exact facts in each particular case?
These answers and more make a difference on what can be done even after the life insurance claim has been denied.Life Insurance Claims Governed by Federal Law
Life insurance is governed by one of two different sets of law. One is State Law and the one seen most often. The other is Federal Law.
Life insurance policies governed by State Law are the ones that are the most favorable to beneficiaries. There are many laws governing what can be done to help the person who had their claim denied and knowing these many laws is important to being able to help beneficiaries who have their claim denied.
Life insurance policies governed by Federal Law contain dangerous pit-falls and someone who has a policy governed by Federal Law must seek the advice of an Experienced Insurance Law Attorney as soon as possible.
The two main types of policies governed by Federal Law are: 1) Federal Employee Group Life Insurance, otherwise known as FEGLI, and 2) policies issued under the Employee Retirement Insurance Security Act otherwise known as ERISA.
If a life insurance policy is governed by ERISA, there are very strict and unforgiving processes, including deadlines, that must be followed and a person Must seek the help of an Experienced Life Insurance Lawyer immediately if a claim is denied.
GET HELP WHEN YOUR CLAIM IS DENIED!!!