Insurance Denials/Bad Faith Information, News & Blogs
What Is a Life Insurance Grace Period?
If you fail to pay your monthly premiums for your life insurance or other form of insurance, the insurance provider has the authority to terminate your policy or let it “lapse.” Insurance companies often count on certain policyholders forgetting to pay their premiums. Policyholders are much more likely to fail to pay when they… Read More »
Policyowners’/Insurance Company’s Responsibility Regarding Insurance Lapse
One of the most common grounds for denial of insurance claims is that the policy has been allowed to lapse due to nonpayment of premiums. If you fail to pay your premiums, insurance companies can and will terminate your policy. For life insurance policies in particular, this becomes an insidious cycle. People are more… Read More »
The Importance of the Reinstatement Period After Policy Lapse
Reinstatement gets you the policy you originally applied for without having to go through the entire application process once again. You’ll need to submit a questionnaire regarding the current state of your health, and if your health remains more or less the same, you’ll get back the rate you were paying before the lapse…. Read More »
Policy Lapse Because Insured’s Premium Payment Was Lost / Delayed
Policy lapse due to nonpayment of premiums is one of the most common reasons for life insurance benefits to be denied. There are, however, many situations in which a policy was unlawfully terminated or inappropriately allowed to lapse. In those situations, beneficiaries may still be entitled to benefits even should the insured party pass… Read More »
How to Avoid a Life Insurance Policy Lapse
Life insurance companies are notorious for allowing policies to lapse because the policyholder forgot to pay a few premiums. People become more forgetful as they age or become ill or injured, which is precisely when they need their life insurance the most. If you’re worried about your life insurance coverage lapsing, or if you’re… Read More »
McHugh v. Protective Life Insurance Company
The Impact of McHugh V. Protective Life Insurance Company One Year Later
Attorney Robert Gianelli was recently interviewed for an article discussing the impact of the California Supreme Court’s decision in McHugh v. Protective Life Insurance Company. That decision ruled that California Insurance Code sections 10113.71 and 10113.72, dealing with an insurance company’s obligations… Read More »
Tips For Handling a Lapsed Life Insurance Policy
If you miss your premium payments, the life insurance company might let your policy lapse. Many people forget to make a payment or two, especially if they reach advanced age or become ill/injured; unfortunately, that’s also when circumstances are most likely to trigger the need for policy benefits. If you missed premium payments and… Read More »
Denied Claim Due to Policy Lapse: What to Do
Insurance companies are more than happy to collect policy premiums for the entire life of a policyholder and then terminate the policy just when the policyholder actually needs it. This is especially true in the life insurance industry: When people get injured or elderly, they often forget to pay their bills. The insurance company… Read More »
Does an Insurance Company Need to Deny a Claim to Be Liable for Bad Faith Damages?
Insurance companies are beholden to the policies they issue as well as to state and federal law. If a policyholder makes a valid claim under the policy, the insurer must pay out coverage in accordance with the policy terms. If an insurer refuses to pay, the beneficiary or policyholder can file an appeal and,… Read More »
How Insurers Are Able to Deny Legitimate Life Insurance Claims
Life insurance companies make their money by collecting premium payments, not by paying out on claims. This can lead them to look for any justification to deny a claim–whether that reason is justified or fabricated. Under certain circumstances, an otherwise legitimate claim can be legally denied. However, even if the life insurance company rests… Read More »
