If you’re reading this, it’s likely because you’ve encountered the frustrating and emotionally taxing experience of having your life insurance claim denied in New York. Life insurance is meant to provide a safety net for your loved ones in the event of a tragedy, but sometimes, insurance companies find ways to reject claims. One of the critical issues that can arise in such cases is the concept of incontestability. If you’re unsure about what this term means or how it might apply to your situation, you’re not alone. The feelings of confusion and worry that often accompany a denied claim are completely understandable. However, it’s important to know that you have options to fight back, and we can help guide you through this process.
What Is Incontestability in Life Insurance?
Incontestability is a legal clause that most life insurance policies contain. Essentially, it means that after a certain period, typically two years, an insurance company can no longer contest or challenge the validity of the policy. This includes investigating and attempting to cancel the policy based on misstatements or omissions made by the insured when they initially applied for the insurance.
In other words, once the incontestability period passes, the insurance company is bound by the terms of the policy, and it cannot deny a claim based on information that was provided at the outset, even if there were mistakes or incomplete information.
The incontestability clause is meant to offer peace of mind to policyholders, ensuring that after a set period, their families will receive the benefits promised without fear that the insurer will backtrack on the policy. Unfortunately, this clause is not always straightforward, and there are instances where insurance companies attempt to deny claims even after the incontestability period has passed. If you’ve been in this situation, it’s important to understand that such claims are often not legally justified.
Why Do Insurance Companies Deny Claims?
While it’s easy to assume that life insurance companies would want to honor their contracts, the reality is that they are for-profit entities. They often try to find ways to deny claims in order to save money. One of the most common reasons for a claim denial is the assertion that the insured made a misrepresentation on their application. This could involve providing incorrect information about their health history, lifestyle, or occupation.
If the insurance company believes the insured intentionally or unintentionally provided false information, they may use this as a reason to deny a claim.
If a claim is denied within the contestability period, the insurer can investigate the policyholder’s statements and potentially void the policy. However, after the incontestability period expires, their ability to challenge the validity of the policy becomes extremely limited, except in cases of fraud. Incontestability clauses exist to protect policyholders and their beneficiaries from being blindsided by a denial after they’ve faithfully paid premiums for years.
How Does Incontestability Affect Denied Claims in New York?
When a life insurance claim is denied after the incontestability period has passed, the insurer cannot simply reject the claim based on errors made in the application unless they can prove fraud. Fraud is a very specific and severe allegation. For instance, if a policyholder intentionally hid critical medical conditions, such as a terminal illness, from the insurance company, this could be considered fraud.
However, if the insurer is merely contesting a claim based on minor discrepancies or honest mistakes in the application process, they are likely overstepping the bounds of the law.
In New York, as in other states, the law provides certain protections to ensure that once the incontestability period has passed, the insurance company cannot arbitrarily deny a claim. If you believe that your claim has been wrongfully denied, it’s important to understand that you are entitled to challenge the insurer’s decision. The first step in challenging a denied claim is to understand the terms of your policy and the reasons provided by the insurer for the denial.
We contacted Trief, Olk & Dror 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 & Dror 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 Can You Do If Your Claim Is Denied After the Incontestability Period?
If your life insurance claim has been denied after the incontestability period, it’s crucial to take action quickly. The denial might not be justified, and there could be several reasons to challenge the decision.
If the insurer still refuses to pay the claim after an appeal, you may have to take further legal action. This is where an experienced attorney comes in. A lawyer who is familiar with New York life insurance law can help you understand your options and guide you through the appeals process or even take your case to court if necessary.
How Can We Help You With Your Denied Life Insurance Claim?
At our firm, we understand that dealing with a denied life insurance claim is not just a legal issue; it’s a deeply personal and emotional experience. When a claim is denied, it can feel like another blow at a time when you’re already dealing with loss and hardship. Our team at Trief, Olk & Dror is dedicated to helping clients who are facing this difficult situation. We are empathetic to your needs and committed to ensuring that you receive the benefits your loved one is entitled to under the life insurance policy.
We know how confusing it can be to navigate the complexities of life insurance law, especially when dealing with a denial that seems unwarranted. Our legal team is here to help you understand your rights, guide you through the steps of contesting the denial, and fight for a positive resolution to your case.
Settlements & Verdicts
Understanding incontestability in life insurance claims is essential for anyone who has had their claim denied. If the denial happens after the incontestability period has passed, the insurance company’s ability to contest the claim becomes significantly limited. However, insurers may still attempt to deny claims based on fraud, and it’s important to be aware of your rights in such situations.
If your life insurance claim has been wrongfully denied, especially after the incontestability period, you may have legal grounds to challenge the decision. At Trief, Olk & Dror, we are here to assist you with your denied claim and work toward securing a favorable outcome. If you’re ready to fight back against an unjust denial and ensure your family receives the benefits they deserve, we encourage you to contact us for a free consultation today.
To learn more about this subject click here: How to Challenge a Life Insurance Claim Denial in New York: A Step-by-Step Guide for Beneficiaries
