There is virtually nothing harder than losing a loved one. But that pain can be even greater when a survivor’s life insurance claim is denied.
However, a Nashville attorney with experience in life insurance claim denials could be helpful. Insurance companies have many justifications for denying a life insurance claim. Some of these reasons are completely legitimate and difficult to fight. Other reasons for a denial could be used as a pretext to unfairly withhold your benefits. In most cases, you can appeal these adverse decisions. Sometimes, it is necessary to file a lawsuit against an insurance company for acting in bad faith. Insurance companies must act in good faith when assessing life insurance claims. Otherwise, they can be held liable.
If your life insurance claim was denied, our Nashville attorneys for life insurance claim denials can help you fight the unreasonable denial of your claim. Contact Howe Law at (844) 876-4357 for a free case review.
What You Can Do If Your Nashville, Tennessee Life Insurance Claim is Denied?
Unfortunately, there are only a couple of options available when a life insurance claim is denied in Nashville. It cannot be overstated that the insurance company is not on your side when distributing life insurance benefits. Insurance companies profit by making unfair settlement offers and outright denying claims. If your life insurance claim is denied, you can appeal the decision in many cases, but a lawsuit could be required to hold the insurance company to its responsibilities.
Filing an Appeal
The first method you could take advantage of to reverse your life insurance claim denial is to appeal the insurance company’s decision. Most insurance companies have a detailed appeals process if a claim is denied, dictated by the policyholder’s plan. An insurance company is usually required to provide notice of the claim denial, which lists the reasons why the claim was denied. If you were not provided sufficient details for your claim denial, that could also be a basis for an appeal.
Filing a Bad Faith Insurance Claim
Sometimes, an insurance company denies a life insurance claim for no foreseeable reason. If a life insurance claim was denied unreasonably, it might be necessary to file a lawsuit against the insurance company for acting in bad faith. Acting in bad faith means that the insurance company never intended to pay the claim, whether it was valid or not.
When insurance companies act in bad faith, they usually give some superficial pretext for why the claim was denied. Insurance companies cannot just give any pretext to deny a claim. They must have reasonable grounds for denying a claim. In some cases, the structure and practices of the insurance company itself could facilitate bad faith conduct in virtually all their transactions.
If the insurance company uses pretexts to deny a claim or if their practices are unfair, you can hold it accountable. If there are no issues with the claim and all documentation was filed correctly, an insurance company should pay the benefits without delay. Our Nashville attorneys for life insurance claim denials can help you determine what options are available in your case to recover the benefits you are owed.
Reasons Why Insurance Companies Deny Life Insurance Claims in Nashville, Tennessee
There could be several reasons that a life insurance company might deny a beneficiary’s claim. Some reasons for denial can be completely valid. Other reasons for denying a claim might be less legitimate, opening the insurance company up to legal action. Fortunately, our Nashville attorneys for life insurance claim denials can help you determine whether your claim denial was unreasonable and what options are available moving forward.
Misrepresentations of Material Facts
Misrepresentations of a material fact are among the most common reasons for denying a life insurance claim. Insurance companies determine plans and the amount of coverage for a policyholder based on the facts a potential policyholder provides. Some policyholders might conceal important details of their life that they believe could hurt their chances of getting good coverage. If a policyholder withheld a fact that would have influenced an insurance company’s decision to insure the person, it would likely be a valid reason to deny a life insurance claim. The following are some material facts that should not be misrepresented to an insurance agent when purchasing a life insurance policy:
- Age
- Weight
- Tobacco use
- Income
- Occupation
- Dangerous or relevant hobbies
- Whether the policyholder carried other life insurance policies
An insurance company sometimes will use this excuse as a pretext for denying a claim in bad faith. If the fact in question would not have influenced an insurance company’s final decision to provide coverage, it is not considered material to the contract.
Cause of Death Not Covered by Life Insurance
A life insurance claim will also be denied if the cause of death is not covered by the insurance policy. Potential life insurance customers should read their policies closely to learn exactly which causes of death are covered. However, some policies might have confusing language, making it hard to determine which causes are covered.
Unpaid Premiums
A life insurance claim will be routinely denied if a policyholder fails to pay their premiums during life. In most cases, an insurance company will provide notice that it is canceling a policyholder’s coverage for not making payments consistently. However, insurance companies are certainly capable of making mistakes. A beneficiary should confirm that payments were, in fact, not made by checking the policyholder’s bank records.
Bad Faith
As mentioned, some life insurance claim denials are made by an insurance company acting in bad faith. While insurance companies should always deal in good faith with their customers, that is, unfortunately, not always the case. An insurance company is likely acting in bad faith if they can offer no valid reason for denying your claim or if they unreasonably delay in paying out your claim. When this occurs, filing a personal injury lawsuit could be the best option to keep the insurance company honest. Our Nashville attorneys for life insurance claim denials can help you if your claim was denied unfairly.
Our Nashville, TN Attorneys for Life insurance Claim Denials Can Help
If your life insurance claim was denied, our Nashville attorneys for life insurance claim denials can provide you with your free case evaluation. Call Howe Law today at (844) 876-4357.
