What is Concealment?
Concealment refers to the intentional withholding or omission of material facts by the policyholder during the application process for a life insurance policy. Material facts are those facts that would influence the insurer’s decision to issue the policy or the terms and conditions of the policy. In other words, concealment occurs when a policyholder fails to disclose important information that could affect the insurer’s assessment of risk.Examples of Concealment
Short-term disability benefits provide financial support to individuals who are unable to perform their job duties due to a covered disability or medical condition. Common qualifying conditions for these benefits include injuries, surgeries, illnesses, and pregnancy-related complications. To begin receiving short-term disability benefits, individuals must first go through a waiting period, also known as an elimination period, during which no benefits are paid. This period typically ranges from zero to 30 days, though for state employees in Indiana, it is set at 30 days. Once the waiting period is over, the benefits usually cover a percentage of the individual’s pre-disability income, commonly between 60% and 70%. Specifically, Hoosier state employees receive 60% of their income. The duration of these benefits generally lasts from three to six months, depending on the specific policy. Eligibility for short-term disability benefits requires individuals to provide medical documentation or certification from a healthcare provider. This documentation verifies the disability and the individual’s inability to work, and it is essential for both establishing eligibility and determining the length of benefit payments.Consequences of Concealment
Concealment can have serious consequences for policyholders, as it may result in the denial of a life insurance claim or the rescission of the policy altogether. If an insurer discovers that a policyholder has concealed material facts during the application process, they may argue that the policy is void ab initio (from the beginning) and refuse to pay out any benefits.
We contacted Trief & Olk to help us with a life insurance issue and Shelly Friedland was the attorney assigned to our case. Before Shelly took our case she explained to us that the likelihood of our success without going to court was possible but not likely. Unfortunately we did not get the outcome we had hoped for but it was our decision to not move forward and have our case litigated. Shelly is very knowledgeable and was very straight-forward in her assessment of our case as we moved forward. She was very patient and thorough in answering our questions. She always responded in a timely manner and listened to our concerns. We would certainly recommend Shelly and would use her firm again in the future.”
- John Ramig
If there is any possibility of winning your life insurance case – this is the place to do it for you. They are efficient, honest and will achieve the best possible outcome.
Shelly Friedland worked on my case where a life insurance policy had lapsed and was even a few days beyond the grace period. Farmers had rejected my claim twice and was unwilling to take a second look. Shelly was able to get them to pay the entire claim without going to court, and the full amount was deposited in my account within a couple months. Highest recommendation.”
- Kathleen Brown
Trief & Olk is a superior law firm. Their attorneys and other legal professionals have a brilliant understanding of the law and the litigation process. They diligently perform their work in an efficient, strategic and cost-effective manner to ensure the best possible outcomes for their clients.
- Christopher Hughes
What is Misrepresentation?
Misrepresentation occurs when a policyholder provides false or inaccurate information during the application process for a life insurance policy. The misrepresentation may be made knowingly or unknowingly, but it must be material to the insurer’s decision to issue the policy or the terms and conditions of the policy.Consequences of Misrepresentation
Misrepresentation can have serious consequences for policyholders, as it may result in the denial of a life insurance claim or the rescission of the policy. If an insurer discovers that a policyholder has made false or inaccurate statements during the application process, they may argue that the policy is void ab initio (from the beginning) and refuse to pay out any benefits.Concealment vs Misrepresentation
While they may seem similar, there are differences between these two forms of life insurance issues. Concealment involves the intentional withholding or omission of material facts, while misrepresentation involves the affirmative assertion of false information. Either can cause your policy to be revoked.Life Insurance Denial Statistics
20%
The annual average number of life insurance claims denied.
$50 Million
The yearly average dollar amount of claims denied by life insurance companies.
.2%
The number of claims appealed annually by consumers.
