Life Insurance Contestability Clause
Contestability of a life insurance policy starts the day the policy is issued and ends 2 years later. In that time period, if the insured dies, the insurance company can contest the claim and do a full investigation. The purpose of the claim investigation is for the insurer to find discrepancies of information and justify a denial of the claim.
When a life insurance claim is submitted during the contestability period the insurance company will require the family to sign a form, known as a HIPPA form, which allows the insurance company to obtain multiple items of personal information about the deceased. This personal information will include; medical records, financial records, criminal reports, driving records and any other records the insurer deems important. All of the information in these records will be matched and verified against the answers given on the original life insurance application. Any misstatement of information on the application will be grounds for the denial of the life insurance claim .
Clients of The Center for Life Insurance Disputes are constantly shocked to learn that their claim, which seemed to be simple and straight-forward, has been denied during the contestability period. We have seen claims denied by HouseHold Bank for medical reasons, by AIG for financial reasons, by Prudential for citizenship reasons, by Farmers for beneficiary reasons and many other companies for similar reasons. We take a proactive approach to preparing contestable life insurance claims. Instead of simply sending in the claim forms and a death certificate, we do a full investigation – exactly the way the insurance company will do their investigation — before the claim is submitted. We identify the issues that will be challenged by the insurer and we find the solutions so that these are eliminated.
One important fact is that life insurance claims get denied frequently, however the denial of a life insurance claim can be overturned. For those who file their own claims, and the claim is denied, we appeal denied claims. If, through our investigation, we determine that a claim was wrongly denied, we will file the appeal on behalf of our client. We have had great success in overturning denied claims because we understand the entire claim process.
By proactively investigating a life insurance claim The Center for Life Insurance Disputes assures the likelihood of a fast and successful claim approval.
Before you file a life insurance claim that is in the contestability period contact the Center for Life Insurance Disputes for a free evaluation.
Also Read:
Six Reasons Your Contestable Life Insurance Claim May Not Be Contestable
