When a loved one passes away, the last thing you want to face is a legal issue with their life insurance policy. However, if you’re reading this, you may be dealing with a life insurance claim that has been denied due to what the insurer calls “misrepresentation.” This can feel overwhelming, confusing, and unjust, especially when you’re already coping with the loss of someone important. We want you to know that you’re not alone in this. Our firm understands the stress and frustration that comes with these types of disputes, and we are here to help guide you through the process.
What is Misrepresentation in Life Insurance?
Misrepresentation in life insurance occurs when the policyholder provides false or incomplete information on their application. Insurance companies may use this as a reason to deny claims, arguing that the insured person did not disclose certain health issues, lifestyle choices, or other factors that might affect the policy. The company might claim that had they known about these issues, they would not have issued the policy or would have issued it under different terms.
While some instances of misrepresentation may be clear-cut, others can be more complicated. It is important to understand that not all mistakes or omissions are considered material misrepresentations. A material misrepresentation, in this case, is something significant enough to influence the insurer’s decision to issue or deny the policy. Minor mistakes or misunderstandings may not always lead to a denial, but you need to act quickly and correctly to protect your rights.
Why Do Insurers Claim Misrepresentation?
Insurance companies may argue that misrepresentation is the reason they are not honoring a life insurance policy. Often, they do this to avoid paying out on claims. Sometimes, these claims are legitimate, but other times, they may be used as a way to get out of paying the benefits owed to you as a beneficiary. Understanding why insurers make these claims is crucial. Insurers may argue that the information not disclosed would have changed their risk assessment or altered the terms of the policy.
Insurance companies have a financial incentive to limit their payouts, and they are often very thorough in reviewing applications and claims to find reasons to deny payment. Whether intentional or not, an omission or error in the application can become the reason the company uses to refuse the claim.
How Can Misrepresentation Affect Your Life Insurance Claim?
If an insurer claims that there was a material misrepresentation on the application, it can cause a significant delay in processing your claim. In some cases, they might outright deny the claim, leaving you without the financial support that you may have been depending on. This can be devastating, especially if you are counting on the life insurance policy to help you through a tough time.
If the insurer is able to prove that a material misrepresentation occurred, they may cancel the policy, deny your claim, or reduce the payout. On the other hand, if you can show that no misrepresentation occurred, or that any mistakes were not material, you may still be entitled to the full benefit of the policy.
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 Should You Do if You Are Facing a Denied Life Insurance Claim Due to Misrepresentation?
If your life insurance claim has been denied due to alleged misrepresentation, it’s important to take the right steps to protect your interests. Start by thoroughly reviewing the life insurance policy and the denial letter. The insurer will typically explain the reasons for the denial and the specifics of the misrepresentation they are claiming.
If you disagree with their assessment, the next step is to gather evidence to support your case. This could include medical records, financial records, or statements from the insured person’s healthcare providers. If the insurer claims that a certain health condition was not disclosed, providing proof that the insured was truthful or that the condition was not relevant at the time of the application can be critical.
You will also want to contact an attorney who has experience handling life insurance claims related to misrepresentation. They can help you review the policy and the insurer’s denial, identify weaknesses in the insurer’s case, and guide you through the legal process. With the right legal support, you may be able to challenge the insurer’s decision and get the benefits that you are entitled to as a beneficiary.
Settlements & Verdicts
Can Misrepresentation Be Challenged in Court?
Yes, misrepresentation claims can be challenged in court, and this is often a key part of the process for beneficiaries facing denied claims. If the insurer refuses to pay out on the policy despite your evidence, you have the option of filing a lawsuit to enforce your rights. In court, your attorney can present your case and argue that the insurer’s claim of misrepresentation is invalid. This could involve demonstrating that any information provided was not material, was disclosed in good faith, or that the insurer’s denial was based on an incorrect interpretation of the facts.
In these situations, it is essential to have strong legal representation. Your attorney will work to protect your rights, gather evidence to refute the insurer’s claims, and make sure that you have the best chance of a successful outcome. The goal is to ensure that you, as the beneficiary, receive the benefits you are entitled to under the terms of the life insurance policy.
How Trief & Olk Can Help You Navigate Misrepresentation Claims
Dealing with a life insurance company that is denying your claim due to alleged misrepresentation is not something you have to go through alone. At Trief & Olk, we understand the emotional and financial burden that such a situation can cause. Our team is dedicated to helping beneficiaries like you fight for the benefits they deserve. We can help you understand the reasons for the insurer’s denial, gather the necessary evidence, and challenge the insurer’s claims in court if needed.
We know that this is a difficult time for you, and our goal is to make this process as smooth as possible. We are here to listen, to fight for your rights, and to make sure you get the support you need. Our firm has a proven track record of handling life insurance disputes and fighting for the best interests of our clients. If you are facing a life insurance claim denial or a misrepresentation issue, don’t hesitate to reach out. We are here to help you secure the benefits that your loved one intended for you. Contact Trief & Olk today, and let us guide you through the process with the care and expertise you deserve.