Denied Life Insurance Claims

People buy life insurance policies with the intention of making sure their family members are not left in dire financial straits in the event of untimely death. If a life insurance company denies or delays a legitimate claim, the beneficiaries may be left without any financial means. An already emotionally difficult time is often worsened by financial difficulties and stress over dealing with denied life insurance claims. When a claim is not paid and a dispute arises, the beneficiary will also have to face the complexities and stress of negotiations and possibly litigation.

Experience. Mr. Gigax was general counsel for Rocky Mountain Life Insurance Co. 1986-88 and since returning to private practice in 1988, has successfully litigated life insurance and other first-party insurance (life, health and disability) cases for individuals and their families (and for insurers, too).

Contact Jim Gigax for a free consultation

Typically, life insurers pay up on claims, paying out billions in death benefits on individual policies each year. Still, thousands of claims are disputed or denied annually. The amount of money withheld each year is estimated to total several hundred million dollars.

Incorporating exclusion clauses into life insurance policies is one way insurance companies aim to reduce their risks of having to pay out large sums of money. One such exclusion is the “dangerous activity” clause, which may “deny” coverage to those who engage in activities such as skydiving or piloting a small aircraft, unless those individuals choose to pay a higher rate to have that exclusion removed from their policy.

Possible life insurance exclusions include:

  • Denial for misrepresentation on the life insurance application
  • Denial based on exclusion in the policy
  • Denial based on alcohol use
  • Denial based on drug use
  • Denial for failure to pay premiums / Lapse
  • Denial for failure to reinstate
  • Denial for failure to provide complete information on application
  • Denial based on prescription drug use
  • Denial based on death caused by an accident
  • Denial based on suicide of the insured
  • Denial based on self-inflicted injury
  • Denial based on presumption of death due to disappearance
  • Denial based on death in a foreign country
  • Denial for failure to provide insurability form
  • Denial based on employer’s mistake
  • Denial based on termination
  • Denial based on change in employment status
  • Denial based on conversion

We would feel privileged to assist you. Click here for a free consultation and more information about your legal options or please call Jim Gigax at (303) 534-2277.