When a loved one passes away, beneficiaries often depend on life insurance benefits to provide financial security during a challenging and emotional time. Unfortunately, many beneficiaries in New York find themselves facing an unexpected roadblock when their life insurance claim is denied. Understanding why these claims are denied, what rights you have as a beneficiary, and how to fight back against unfair denials can make all the difference in securing the benefits that were intended for you. In New York, life insurance policies are governed by complex laws, and insurance companies may use a variety of tactics to deny claims. For beneficiaries, this can add a significant burden during an already difficult period. Knowing how to navigate the claims process is crucial to ensuring that you receive the payout you are entitled to.
Common Reasons for Denied Life Insurance Claims in New York
There are several common reasons why life insurance claims are denied in New York. One of the most frequent reasons is that the insurance company claims the policyholder misrepresented or omitted information on their initial application. This could involve anything from failing to disclose a pre-existing medical condition to inaccurately stating lifestyle factors such as smoking or drinking habits. Even small omissions or unintentional errors can be enough for the insurance company to deny a claim.
Another common reason for denial is that the policyholder may have lapsed on their payments. If the policyholder missed premium payments or allowed the policy to lapse, the insurance company may argue that the policy was no longer in effect at the time of death. This situation can be particularly frustrating for beneficiaries who may not have been aware of any payment issues.
Additionally, insurance companies often cite policy exclusions as a reason for denial. Many life insurance policies include exclusions for certain causes of death, such as suicide within the first two years of the policy or death resulting from illegal activities. If the insurance company believes that one of these exclusions applies, they may refuse to pay out the claim. Beneficiaries must review the policy terms carefully to understand the exclusions that may affect their claim.
The Contestability Period and How It Affects Claims
Life insurance policies typically include a contestability period, which is a specific timeframe during which the insurance company has the right to investigate and challenge the validity of the policyholder’s statements on the application. In New York, the contestability period usually lasts two years from the date the policy goes into effect. If the policyholder dies within this period, the insurance company can review the application for any inaccuracies or omissions and may use this as grounds to deny the claim.
After the contestability period ends, the insurance company’s ability to deny claims based on misrepresentation becomes more limited. However, if the insurance company can prove that the policyholder committed fraud, they may still have grounds to deny the claim, even after the contestability period has expired. It is important for beneficiaries to understand the implications of the contestability period when filing a life insurance claim and to be prepared for potential challenges if the death occurs within this timeframe.
What to Do if Your Life Insurance Claim is Denied in New York
Receiving notice that your life insurance claim has been denied can be overwhelming, but it is essential to understand that a denial is not the end of the road. In New York, beneficiaries have the right to appeal a denied life insurance claim and seek legal recourse if necessary. The first step in challenging a denial is to request a detailed explanation from the insurance company regarding the specific reason for the denial. By obtaining this information, beneficiaries can better understand the insurer’s reasoning and determine whether the denial was justified.
Next, it is crucial to gather all relevant documents related to the life insurance policy and the claim, including the policy itself, the application, premium payment records, and any communication with the insurance company. Having a thorough record of these documents can help build a strong case if the denial is unjust.
In many cases, life insurance companies rely on technicalities or ambiguous language in the policy to deny claims. It is not uncommon for insurers to act in their financial interests, rather than in good faith toward beneficiaries. For this reason, seeking legal advice from an attorney experienced in handling denied life insurance claims can be an invaluable step in fighting the denial. In New York, the legal system offers options for challenging unfair denials, and an attorney can help guide beneficiaries through this process to increase the chances of a favorable outcome.
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
How Life Insurance Denial Attorneys Can Help
When life insurance claims are denied, the assistance of an attorney can be crucial in securing the benefits to which you are entitled. Attorneys who are knowledgeable in New York life insurance laws understand the tactics that insurance companies use and can advocate on behalf of beneficiaries to ensure that these companies fulfill their obligations. An attorney can assist in interpreting the language of the policy, identifying any violations of New York insurance law, and building a case to challenge the denial.
In many cases, attorneys can work with the insurance company to negotiate a resolution without the need for litigation. However, if the insurer refuses to pay, legal action may be necessary. An experienced attorney can represent beneficiaries in court, presenting evidence and arguments that demonstrate why the denial was improper.
New York law requires life insurance companies to act in good faith when handling claims. If an insurance company is found to have acted in bad faith by denying a claim without a valid reason or by failing to conduct a thorough investigation, the beneficiary may be entitled to additional damages. By working with an attorney, beneficiaries can ensure that their rights are protected and that the insurance company is held accountable for any wrongdoing.
The Role of New York’s Insurance Laws in Denied Life Insurance Claims
New York has specific laws and regulations that govern life insurance policies and claims. These laws are designed to protect both policyholders and beneficiaries, ensuring that insurance companies fulfill their obligations. For example, New York’s Insurance Law Section 3203 requires life insurance companies to pay claims promptly, typically within a 30-day period. If the insurer fails to pay within this time frame, they may be required to pay interest on the amount due.
Additionally, New York law prohibits life insurance companies from denying claims based on misstatements made on the application after the policy has been in effect for more than two years, unless the misstatement was fraudulent. This law provides important protections for beneficiaries who may otherwise face unjust denials based on innocent mistakes made by the policyholder.
Beneficiaries should also be aware that New York law gives them the right to file a complaint with the New York Department of Financial Services if they believe that their claim has been unfairly denied. The department has the authority to investigate complaints against insurance companies and take enforcement action if necessary.
Settlements & Verdicts
Time Limits for Filing a Denied Life Insurance Claim Lawsuit in New York
In New York, there are time limits, known as statutes of limitations, for filing lawsuits related to denied life insurance claims. Generally, beneficiaries have six years from the date of the denial to file a lawsuit against the insurance company. However, it is crucial to act as soon as possible, as waiting too long can jeopardize the chances of a successful outcome.
The sooner beneficiaries seek legal assistance, the better their chances of recovering the benefits they are owed. An attorney can help navigate the legal process and ensure that all deadlines are met.
Preventing Life Insurance Claim Denials in the Future
While beneficiaries may not always have control over the claims process, there are steps that can be taken to reduce the likelihood of a claim being denied in the future. Policyholders should be encouraged to review their life insurance policies regularly to ensure that all information is accurate and up to date. Keeping track of premium payments is also essential, as missed payments can result in the policy lapsing and the benefits being lost.
Additionally, policyholders should be clear about any exclusions or limitations in their policy and take steps to ensure that beneficiaries are aware of these terms. Open communication between the policyholder, the insurance company, and the beneficiaries can help prevent misunderstandings and reduce the chances of a claim being denied.
If you are facing a denied life insurance claim in New York, you do not have to navigate the process alone. Trief & Olk understands the complexities of life insurance policies and the tactics that insurance companies use to deny rightful claims. With a strong legal team on your side, you can fight back against an unfair denial and secure the benefits you deserve. Contact Trief & Olk today for a consultation to discuss your case. We are here to help you through this challenging time and ensure that your rights are protected.