Long Island Attorney for Life Insurance Claim Denials
Life insurance is intended to provide financial security for a person’s family in the event of the person’s untimely death. However, recovering compensation can be difficult for beneficiaries if their life insurance claim is denied.
There are many reasons why an insurance company will deny the life insurance claim of a policyholder’s loved one. Fortunately, a Long Island attorney experienced in life insurance claim denials can be helpful. Insurance companies often look for reasons to deny a claim but not every reason for a denial is valid. There are many situations where a mistake could have been made, or the insurance company deliberately acted in bad faith.
If your life insurance claim for a deceased loved one was denied, our Long Island attorneys for life insurance claim denials can help you contest the decision for life insurance claim denials. Contact The Carrion Law Firm today at (631) 910-7493 for a free case review.
Reasons Why Life Insurance Claims Are Denied on Long Island, NY
There are numerous why an insurance company would deny a life insurance claim on Long Island. One could argue that an insurance company’s primary function is to make a profit by denying life insurance claims rather than providing customers with security and support at one of the most difficult times. While some denials could be the policyholder’s fault, other denials could be made in bad faith, leaving you without the benefits your loved one intended. Our Long Island attorneys for life insurance claim denials can help you determine if your life insurance claim denial was justified.
Cause of Death Not Covered by Life Insurance
Many Long Island life insurance claims are denied because the policyholder’s cause of death is not covered under their insurance policy. Some customers might not look closely at what causes of death are covered under their chosen insurance policy. Insurance companies are skilled at wording the language of a policy to exclude certain causes, making it hard for beneficiaries to know if they are properly covered.
Misrepresentations of Material Facts
Misrepresentations of a material fact could also result in denying life insurance benefits. Insurance companies rely on the facts provided by the policyholder to determine the rates at which the person will be insured. If the policyholder misrepresented a fact that would have impacted the policy they received if the company had been aware, it could be reasonable grounds to deny a claim. Several material facts could result in a life insurance claim denial if misrepresented to an insurance agent:
- Age
- Occupation
- Tobacco use
- Income
- Weight
- Dangerous hobbies
- Possession of other life insurance policies
However, one should be careful that misrepresenting a material fact is not used as a pretext to deny a life insurance claim. Again, the fact must be so material that it would likely have made the company reconsider providing coverage.
Beneficiary Disputes
A common cause for insurance claim denials on Long Island is disputed between beneficiaries. There are situations where a policyholder will change the beneficiary named in the policy without the knowledge of the beneficiary. Whether by accident or design, beneficiaries tend to be surprised when they find out they are not the recipient of the deceased’s policy’s benefits. However, a previously named beneficiary can dispute the policy by filing a competing claim to recover the benefits they believe they are entitled. Our Long Island life insurance claim denials attorneys can help you untangle your life insurance beneficiary disputes.
Unpaid Premiums
A straightforward reason for a life insurance claim denial is if the policyholder failed to pay their premiums for their policy. Insurance companies will cancel coverage when payments are not made on lapsed policies. However, you should confirm if the policyholder actually failed to make payments. Insurance companies are not beyond making mistakes, and you could have bank records proving that payments were made. Insurance companies must also have provided adequate notice to the policyholder that their coverage was about to lapse and would subsequently be terminated. Our Long Island attorneys for life insurance claim denials can help clear up any misunderstanding regarding unpaid premiums.
Bad Faith
Life insurance claim denials made in bad faith could also cause a denial of benefits. Insurance companies are expected to act in good faith on all their transactions. But as many of us know, they only sometimes practice good faith in reality. If insurance companies deny a claim for invalid reasons or make excuses for delaying payment, they could be held liable for acting in bad faith. Bad faith lawsuits are often the best way to fight the denial of a life insurance claim. Our Long Island life insurance claim denials attorneys can help you determine if your claim denial resulted from the insurance company dealing in bad faith.
What to Do If Your Long Island, NY Life Insurance Claim is Denied
Only a few options are available if your Long Island life insurance claim is denied. The most direct recourse would be to appeal the adverse decision through the appeals process per the instructions provided by the life insurance and insurance company’s policies. Insurance companies must provide you notice of the denial, which details the reasons for the denial. You could potentially appeal if you were not provided sufficient details explaining why your claim was denied.
If you believe your life insurance claim was denied by the insurance company unreasonably, you might be able to file a lawsuit against them for acting in bad faith. If the insurance company uses pretexts to deny a claim or their practices are unfair in their structure, you can hold them accountable. If there are no issues with the claim and all documentation was filed correctly, an insurance company should pay the benefits without delay. Our Long Island life insurance claim denials attorneys can help if you believe you are being denied benefits because of the bad faith conduct of the insurance company.
Our Long Island Attorneys for Life Insurance Claim Denials Can Help
If your loved one passed away and your life insurance claim was denied, our Long Island attorneys for life insurance claim denials can fight on your behalf to recover the benefits you are owed. For a free case consultation, call The Carrion Law Firm at (631) 910-7493.