Fighting Back: Understanding Massachusetts Laws That Protect Beneficiaries from Life Insurance Denials

When dealing with the denial of a life insurance claim, the emotional toll can feel overwhelming. At a time when you are already processing the loss of a loved one, facing the confusion and stress of a denied claim is disheartening. You may feel uncertain about your rights and what steps to take next. If you are in this position, know that you do not have to face this challenge alone. Massachusetts law provides protection for beneficiaries, and we are here to guide you through this process.

Understanding Why Life Insurance Claims Are Denied

Life insurance is designed to provide financial security to loved ones in their time of need. However, not all claims are approved. Insurance companies may deny claims for a variety of reasons. Some of these reasons include alleged misrepresentation on the policy application, unpaid premiums, or disputes over the cause of death. In certain cases, the insurer may rely on complex language in the policy to argue that the claim does not meet their requirements.

Denials can feel unfair and unjustified, particularly when the policyholder had every intention of protecting their beneficiaries. If you are faced with this situation, it is essential to understand that a denial does not necessarily mean the end of your claim. Massachusetts law requires insurance companies to act in good faith and prohibits them from wrongfully withholding payments.

Massachusetts Law and the Duty of Good Faith

Massachusetts law provides important protections for beneficiaries of life insurance policies. Insurance companies are obligated to handle claims in good faith, meaning they must process claims fairly, promptly, and without unreasonable delays. If a claim is denied, the insurer must provide a clear and valid explanation.

Under Massachusetts law, beneficiaries also have the right to challenge a denial. If the insurance company acted in bad faith or unreasonably denied a claim, beneficiaries can seek legal remedies. This can include pursuing compensation for the policy amount and, in some cases, additional damages for the hardship caused by the denial.

Ted Treif (Partner)

Life insurance attorney since 1976

Barbara Olk (Retired)

Life insurance attorney since 1976

Eyal Dror (Associate)

Life Insurance Attorney since 2007

Steps to Take After a Life Insurance Claim Denial

If your claim has been denied, the first step is to carefully review the denial letter from the insurance company. This letter will outline the reasons for the denial and provide important information about your policy. It is crucial to gather all related documents, including the original policy, correspondence with the insurer, and any other relevant paperwork.

Next, consider reaching out to an attorney who can evaluate your case and explain your options. Massachusetts law is complex, and having legal guidance can make a significant difference in your ability to challenge the denial. An attorney can investigate the insurance company’s actions, identify potential violations of the law, and help you build a strong case.

Common Defenses Used by Insurance Companies

Insurance companies often rely on specific defenses to deny claims. One common argument is that the policyholder provided inaccurate or incomplete information during the application process. For example, they may allege that the policyholder failed to disclose a pre-existing medical condition. Another defense involves asserting that the policyholder did not pay their premiums on time, causing the policy to lapse.

In some cases, insurers may claim that the cause of death is excluded under the terms of the policy. For instance, certain policies exclude coverage for deaths caused by specific activities or circumstances. While these defenses can seem intimidating, they are not always valid. A thorough review of the policy and circumstances surrounding the claim can reveal whether the insurer’s arguments hold merit.

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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

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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

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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

The Emotional Impact of a Life Insurance Denial

The denial of a life insurance claim can feel deeply personal, especially when it comes during a time of mourning. Families depend on these benefits to cover expenses such as funeral costs, outstanding debts, or ongoing financial needs. A denial can leave you feeling abandoned and betrayed by the very policy meant to offer protection. This stress can make it difficult to focus on your options or navigate the complexities of the claims process. Having someone in your corner who understands both the legal and emotional toll of a denied claim can make all the difference.

Uncovering Bad Faith Practices by Insurers

While many insurance companies act responsibly, there are instances where insurers employ tactics to delay or deny payments unfairly. This can include failing to conduct a proper investigation, misinterpreting policy terms, or pressuring beneficiaries to accept a lower payout. Such actions are not only unethical but may also violate Massachusetts law. Identifying and proving bad faith practices requires a detailed understanding of the law, as well as the ability to challenge the insurer’s conduct effectively.

The Importance of Acting Quickly

Timing is critical when dealing with a denied life insurance claim. Massachusetts law imposes strict deadlines for appealing a denial or filing a lawsuit. Delays can jeopardize your ability to recover the benefits you are owed. Acting promptly allows you to gather the necessary documents, seek legal guidance, and begin the process of challenging the denial. A proactive approach not only strengthens your case but also helps you regain peace of mind during a difficult time.

Challenging a denied life insurance claim can be a complicated process, particularly if you are unfamiliar with the legal landscape. An attorney can take the burden off your shoulders by handling communication with the insurance company, gathering evidence to support your claim, and negotiating on your behalf.

Settlements & Verdicts

$3 Million Policy

William Penn Life Insurance

$1.2 Million Policy

Primerica

$1.5 Million Policy

Metropolitan Life Insurance Company

$1 Million Policy

Protective Life Insurance

$675,000 Settlement

Confidential Settlement

$4.3 Million Policy

State Farm, Primerica, Farmers, BrightHouse

In Massachusetts, courts take claims of bad faith seriously. If the insurer’s actions are found to violate the law, they may be held accountable for their conduct. This can provide beneficiaries with not only the financial relief they are entitled to but also a sense of justice.

While life insurance companies have a responsibility to honor valid claims, they are also businesses that prioritize their bottom line. Denials are not uncommon, but they are not always justified. By standing up for your rights and seeking legal assistance, you can push back against unfair practices and protect the benefits that your loved one intended for you to receive.

If you are facing a denied life insurance claim in Massachusetts, Trief & Olk can help you navigate the challenges ahead. We are dedicated to ensuring that beneficiaries receive the compensation they deserve. Our compassionate approach and commitment to justice mean that you do not have to face this battle alone. Contact us today to discuss your case and begin the process of fighting back against an unjust denial.

To learn more about this subject click here: Understanding New Jersey Life Insurance Denials: Essential Information for Beneficiaries