Articles Tagged with: suing life insurance company

A Guide to Handling Your Life Insurance Claim Denial Appeal

A Guide to Handling Your Life Insurance Claim Denial Appeal

You think you know how life insurance works – your loved one purchased a life insurance policy so that if something should happen to them, you would get a payout. Unfortunately, the process is rarely that straightforward.

Like any other business, life insurance companies seek to make a profit. They only make money for their shareholders when they collect more in premiums than they pay out in death benefits. For this reason, they are quick to deny claims that are later proven to be valid.

Was your life insurance claim denied? We make it our business to get out clients paid. Call us to discuss your case.

First, Get the Life Insurance Claim Denial in Writing

If your life insurance claim was denied over the phone, ask to have it in writing. As a life insurance beneficiary, you are entitled to a full explanation of why your claim was denied, in writing. The letter should outline the reasons your claim was denied as well as applicable policy provisions, legal theories, and regulations or statutes. 

When you receive the denial letter,  the life insurance company should also include instructions for disputing the denial. The claims appeal process may also be explained on the life insurance company’s website. Appealing a denied life insurance claim may be an internal process or may involve filing an administrative law case or a legal complaint. 

Second, Understand Why Your Life Insurance Claim was Denied

While the denial letter should explain the reason your life insurance claim was denied, many denial letters are simply form letters with no specificity. Contact the life insurance company and ask for a complete explanation. If they refuse to provide a written explanation for your claim denial, contact an experienced life insurance attorney for help.

Common reasons life insurance companies deny claims include:

An experienced life insurance attorney will investigate and find out if the reason given for denial of your claim actually applies. In many instances, a claim that is initially denied may be paid when an investigation shows that the insured was not at fault.

For example, if the insured was eligible for disability waiver of premiums and did not receive that waiver, the lapse in coverage was not the insured’s fault and you should still get the death benefits. Similarly, if the life insurance company cannot show that they sent the legally-required lapse notices to the insured, you should still get paid.

Maybe the insured made an innocent mistake on their medical questionnaire that the insurance company now alleges was fraud intended to get the insured a lower premium payment. In these cases, the insurance company may settle for paying the death benefits minus what the insured would have paid in premiums had the insured not made that error.

All too often, life insurance companies are quick to deny claims that are valid. Do not take no for an answer! 

Third, Seek the Help of a Life Insurance Beneficiary Lawyer

There can be no doubt that working with an experienced life insurance attorney will improve your chances of getting a life insurance payout. Life insurance lawyers generally work on contingency, meaning that there is no out-of-pocket expense to you and that they do not get paid unless you do. Your initial case consultation will be free of charge.

Life insurance is highly regulated at both the state and federal levels. Sometimes the laws of more than one state apply. Group life insurance through an employer is governed by ERISA, requiring that you file a formal administrative appeal. In addition to investigating the circumstances of the claim denial and helping you locate and obtain information and documentation, your life insurance lawyer will know and follow all applicable regulations, laws, and legal procedures. 

The life insurance company has a team of lawyers on their side, working to further their interests. Shouldn’t you have a team of experienced life insurance lawyers on your side too? 

Call us today at 1-855-898-4158 for your free, no-obligation consultation.

Can You Sue a Life Insurance Company

Can You Sue a Life Insurance Company?

In short, yes, you can sue a life insurance company. Life insurance lawsuits occur because life insurance companies refuse to pay claims or delay payment on claims for death benefits. Someone who was an irrevocable beneficiary to a life insurance policy might also sue the life insurance company if the beneficiary designation was changed.

If you are or should be a life insurance beneficiary and you are thinking of suing a life insurance company, call us. Our experienced life insurance lawyers have helped beneficiaries nationwide file life insurance lawsuits and get the payouts they deserve.

How Life Insurance is Supposed to Work

Life insurance companies pay out death benefits to beneficiaries after the death of the insured – or at least that is the way that life insurance is intended to function. It is rarely that straightforward. 

Insurance companies are like any other type of business in that their purpose is to make profits. They only make profit when they collect premiums and delay or deny beneficiaries’ claims. We have had cases where an insured paid policy premiums faithfully for years yet the insurer refuses to honor the policy after his or her death and denies beneficiaries’ valid claims.

A life insurance policy is more than just a promise to pay after the death of the insured. It is a legally binding contract, and the insurer is legally required to abide by its terms. When an insurance company engages in bad faith efforts to delay or deny valid claims, the insurer can be held accountable for the beneficiaries’ losses. 

A life insurance lawsuit gives those who are being treated wrongly by insurance companies the opportunity for recourse. The experienced life insurance lawyers at Boonswang Law can help you file and litigate a lawsuit against an insurance company. Call us today to schedule your free, no-obligation consultation.

Filing a Life Insurance Lawsuit

Can you sue for life insurance proceeds? Yes, and you should sue the life insurance company if your claim is being unfairly delayed or denied. 

Suing the Life Insurance Company for Breach of Contract

A life insurance policy is a contract between the life insurance company and the insured. The insured’s beneficiary has standing to file a sue the life insurance company for breach of contract if they do not receive the death benefits. However, know that in breach of contract cases, damages (the money judgment you can obtain) are limited to the face value of the policy.

Suing the Life Insurance Company for Bad Faith

In the alternative, beneficiaries whose insurers unfairly delay or deny legitimate claims should consider suing the life insurance company for bad faith. Rather than a breach of contract action, a bad faith claim is a tort lawsuit that allows the beneficiary to obtain the life insurance payout to which he was originally entitled and, in some cases, recover money in excess of policy limits for damages caused by the insurer’s wrongful acts.

A bad faith life insurance lawsuit is possible because the law reads an implied covenant of good faith and fair dealing into every insurance contract. Although the contract may not explicitly state such a covenant, the law requires insurance companies to act fairly and in good faith in processing and paying claims.

The good-faith rules recognize the special dependence that the inserted has on a life insurance company. The insured pays for life insurance coverage for months or years, trusting that the policy will take care of his family or loved ones upon his death. The insurance company can be subject to severe penalties if the insurer unjustly tries to avoid its obligation to the policy’s beneficiaries.

Getting Help Filing a Life Insurance Lawsuit

Filing a life insurance lawsuit can be complicated, but Boonswang Law is here to help you. Our practice is dedicated to fighting for life insurance beneficiaries who are treated wrongfully, and we have a strong track record of success. Our skilled life insurance attorneys are prepared to litigate your bad faith claim before a judge or jury. We have also helped many clients avoid the stress of trial by negotiating with the insurance company to pay out, without litigating in court.

Your consultation is free and our attorneys do not charge for legal services unless we are able to secure compensation for you from a settlement with the life insurance company or a judgment from a life insurance lawsuit. Call us today at 1-855-898-4158 to discuss your case.

Can You Sue for Life Insurance Proceeds?

The answer is yes. There are four circumstances under which you can file a lawsuit to collect life insurance death benefits. 

  1. The life insurance company is unreasonably delaying payment of your claim for death benefits. 
  2. The life insurance denied your claim for death benefits.  
  3. There is a beneficiary dispute. 
  4. A creditor can sue someone to collect on a debt, obtain a money judgment, and collect from the life insurance proceeds the debtor received if state law allows. For example, Florida life insurance laws prohibit creditor collection on life insurance proceeds.

This article will explain the three scenarios that warrant a lawsuit against the life insurance company. If your claim for death benefits was denied or is being delayed for no good reason, or if you want to contest a beneficiary designation, call the experienced life insurance lawyers at Boonswang Law to discuss your case, free of charge. You don’t have to fight the life insurance companies alone!

How to Sue if the Life Insurance Company is Unreasonably Delaying or Denied Payment of Your Claim

If 30 days have passed since you filed your claim for death benefits and you have not heard from the life insurance company, or the life insurance company tells you they are still investigating, or the life insurance company denied your claim, it is time to discuss your case with an experienced life insurance lawyer.

Why do you need to work with a life insurance attorney? Because life insurance companies operate like any other business – to make a profit. To this end, life insurance companies seek to collect more in premium payments than they pay out in claims for death benefits. In other words, their quest for profits puts their interests in conflict with the interests of the insured and your interests as beneficiary.

Life insurance companies employ teams of attorneys to justify delaying and denying what are later determined to be valid life insurance claims. To level the playing field, you need your own experienced legal representation if your claim is not paid within 30 days. And if the delay in paying your claim was unreasonable, you may be entitled to interest on the death benefits!

Steps to Take When Your Life Insurance Claim is Delayed or Denied

  1. Collect all correspondence from the life insurance company regarding your claim, as well as a copy of your completed and filed claim form and the policy itself, if available.
  2. Consult with an experienced life insurance attorney, who will assess your case free of charge. Reputable life insurance lawyers take cases on contingency, meaning that they do not get paid unless you do.
  3. Let your life insurance lawyer negotiate with the life insurance company to get your payout. Our team has been able to settle many cases and get our beneficiary clients paid at this stage. Call us at 1-855-397-6236 for immediate help.
  4. If the life insurance company will not pay, your life insurance attorney will draft and file a complaint against them under the laws of your state, and advocate for you in court.

State law varies as to how to dispute a delayed or denied life insurance claim. Rest assured that our team of life insurance lawyers has experience in every state in the nation. We can efficiently and effectively employ your state’s legal process to get you paid, if and when negotiations with the life insurance company fail. Call us for your free, no-obligation consultation.

How to File a Life Insurance Beneficiary Dispute

There are several circumstances under which you may want to contest a life insurance beneficiary designation. In these cases we will represent you in what is called an interpleader, and the life insurance company will delay paying death benefits until a court resolves the beneficiary dispute.

The Life Insurance Beneficiary Designation Changed at the Last Minute

Are you suspicious of a last-minute beneficiary change from you to someone else? Perhaps you suspect that the insured changed the beneficiary designation under duress, or perhaps was not of sound mind when they made the change.

If you are the former named beneficiary, you have standing to file suit. Be advised that it is very difficult to prove that someone, perhaps a relative, romantic partner, or caregiver, pressured the insured to change the beneficiary designation to themselves. It is also difficult to prove that the insured lacked the capacity to make the change.

Call us for help if you suspect the insured changed beneficiary designation from you to someone else under duress or lacking the capacity to do so. We will assess your case free of charge.

The Life Insurance Beneficiary Designation Changed After the Death of the Insured

A life insurance beneficiary designation cannot be changed after the death of the insured, for any reason. Only the insured has the power to make changes to their life insurance policy.

If the date of the change in life insurance beneficiary designation is after the insured’s date of death, that change is fraudulent. If you are the formerly-named beneficiary, call our experienced life insurance fraud lawyers for help getting the death benefits the insured intended you receive.

The Life Insurance Beneficiary Designation Changed Contrary to Court Order

Many child support and spousal support obligors are under court order to name the obligees as beneficiaries to their life insurance policy. If the insured changed the beneficiary designation to someone other than the support obligees contrary to court order, the obligees have standing to file a beneficiary dispute.

State law varies as to how this change in beneficiary designation is treated, especially in community property states where the insured was married and changed the beneficiary designation to their spouse. Our life insurance lawyers have extensive experience unraveling the complex web of laws and regulations governing beneficiary designations in each state. Contact us for help – free of charge.

The Insured Had Group Life Insurance

Many states have revocation-upon-divorce statutes, which revoke an ex-spouse’s life insurance beneficiary designation automatically. However, if the insured had group life insurance, the beneficiary designation is controlled by a federal law called ERISA which overrides state law and an ex-spouse can remain the named life insurance beneficiary. 

This gets even more complicated in community property states, where spouses and ex-spouses may be entitled to some or all of the death benefits in certain circumstances. Call us for help if you are a spouse or an ex-spouse grappling with this situation. 

Call Boonswang Law for Help with Your Life Insurance Lawsuit

Whether you are a named beneficiary struggling to get your life insurance claim paid, or you are a former beneficiary and believe you should still receive the death benefits, we can help. We have helped life insurance beneficiaries nationwide get the death benefits they deserve. Call us at 1-855-898-4158 to discuss your case. Our goal is to get you paid!

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