Life & Property Insurance Law
Frequently Asked Questions

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What is life insurance?

Life insurance is a legally binding contract that provides financial support in the unfortunate event of an insured party's death.  If the insured passes away, the life insurance company is obligated to pay the full amount of the policy's proceeds to a designated beneficiary or beneficiaries, plus any applicable interest accrued from the date of the insured's death.  When a life insurance claim is wrongfully delayed or denied, an experienced life insurance attorney can help collect the unpaid insurance proceeds.

How much time does a life or property insurance company have to pay my claim?

Life and property insurers must investigate your claim within a reasonable period of time, usually within 30-60 days of the life insurance claim or property insurance claim being filed, or in accordance with the insurance policy terms.  Many insurance companies will attempt to discourage you from hiring a life insurance lawyer or property insurance lawyer by wrongfully delaying your life, homeowners, renters, or other property insurance claim, by offering a reduced or "low ball" settlement amount, or by making other efforts to avoid paying the full amount of your claim.  If your life or property insurance claim has been wrongfully delayed or denied, you should ask a life and property insurance lawyer about your case.  Your life and property insurance lawyer can help to determine whether you have a cause of action for breach of contract and/or bad faith.

What is bad faith?

As party to a contract, life and property insurance companies have the obligation to deal in good faith with the insured party and his or her designated beneficiaries.  Bad faith insurance practices may include any frivolous, knowing, reckless, or otherwise wrongful delay or denial of an insurance claim for a self-interested purpose, such as the willful failure to conduct a diligent and thorough investigation of a life insurance claim or property insurance claim, refusing to communicate with an insured party or beneficiary, harassing an insured party or beneficiary, or any other objectionable conduct calculated to avoid the obligation to pay the proceeds of an insurance policy.  If an insurance company has engaged in bad faith practices in connection with your life or property insurance claim, you may be entitled to recover punitive damages and attorney's fees.
   
Is a life or property insurance company able to legitimately deny a claim?

Yes, there are legitimate reasons for an insurance company to deny a life insurance claim or property insurance claim.  For example, if a life insurance applicant lies about a serious medical condition to obtain a policy, the life insurance company may be entitled to rescind the policy within two (2) years of the policy's effective date, based on medical records and evidence that the undisclosed medical condition was "material" to its insurance risk. Unfortunately, life insurance companies sometimes wrongfully deny claims based on medical misrepresentations which are "immaterial" or insufficient to rescind a life insurance policy.  Property insurers, when investigating homeowners, renters, and other property losses, may intentionally delay claims for months or even years in order to force insureds to accept "low-ball" offers.  In fact, the financial success of an insurance company depends upon collecting premiums and later avoiding full payment on any claims filed against its policies.  You should never accept a reduced settlement or an insurer's explanation for a denied insurance claim without the advice of a life insurance attorney or property insurance attorney who has experience with the practices, policies, and tactics of life and property insurers.

What is ERISA?

ERISA [the Employee Retirement and Security Act of 1974] is a federal statute that applies to many life insurance policies obtained through an insured party's employment.  If the ERISA statute applies to your claim, it is critical that you immediately consult with a life insurance lawyer experienced in handling ERISA cases.  Do not handle your own administrative appeal.  If the appeal of a denied ERISA claim is not handled properly, it will negatively affect your chance of a favorable recovery in court, the evidence in a future law suit may be restricted or limited to the appeal file, or your claims may be forever barred.  Your best case must be presented at the appeal phase by a qualified life insurance attorney.

What is a contestable period?

The contestable period of a policy refers to the period of time in which a life insurance company may rescind a policy if the insured made material misrepresentations on his or her life insurance application.  Typically, this period is two (2) years from the policy's effective date.  If an insured passes away within the contestable period, the life insurance company will conduct an investigation to ensure that all application questions were answered truthfully and accurately.  The burden is on the insurance company to prove that the inaccurate or undisclosed information is "material" to its risk of insuring the applicant.  In other words, a life insurance company may only rescind a policy based on a material representation if it can prove that coverage would not have been issued if all application questions had been answered correctly and completely.  State laws differ regarding the insured's knowledge and intent to deceive at the time of completing the insurance application.

Can a policy be rescinded based on misrepresentation if an application question was confusing?

If an insured party mistakenly answers a question on the insurance application inaccurately or incompletely, a court may find the policy language to be ambiguous.  The ambiguous language of a life insurance policy or property insurance contract is always construed in favor of the insured party or beneficiary because insurance companies draft their own contracts.  If you believe that language used in an insurance application question or insurance contract is ambiguous, you should immediately consult with a life insurance lawyer or property insurance lawyer about your rights.

What is a Period of Limited Activity?

A life insurance policy may have a clause that delays the effective date of coverage if an insured party or dependent is confined to a hospital or is otherwise unable to carry on the normal activities of a healthy person at the policy's specified effective date.  This is a common exclusion in employment or ERISA-governed policies.  For example, a group insurance policy may not be active for you or your family member, even if coverage is effective for other members of the group policy.  Unfortunately, a life insurance company may attempt to avoid paying your claim by disclaiming your physician's findings and hiring an independent medical examiner to determine whether you or your family member could perform the normal activities of a healthy person of the same age or sex.   If a life insurance company delays or denies your claim based on conflicting medical opinions, you should ask a life insurance lawyer to review your case.

Is a life or property insurance company obligated to notify an insured party that their policy may lapse?

Yes, an insured party has the right to be notified if their policy is about to lapse for nonpayment.  Typically, life and property insurance policies include a 30-60 day grace period during which time a late premium can be applied without affecting coverage.  Insurance companies must notify an insured party prior to the expiration of the grace period that the policy will lapse if payment is not received by a certain date.  Sometimes, a life insurer or property insurer does notify the insured of the grace period, but the notice is confusing or the language is improper or insufficient to provide sufficient legal notice.  Thus, it is always important to ask an experienced life insurance attorney or property insurance attorney to review grace period notices and lapse letters.

How much will it cost to pursue my life or property insurance claim?

The Life & Property Insurance Law Offices of Heather D. Lee offer low contingency-based legal representation on every wrongfully denied life insurance claim and property insurance case, allowing our clients to secure the legal protection they deserve without having to worry about how to afford a life insurance lawyer or property insurance lawyer.  We will collect wrongfully delayed and denied insurance proceeds on behalf of you and your family, and no legal fees will become due before your delayed or denied life, homeowners, renters, or other property insurance claim is paid.  If we are unsuccessful, you will not owe any legal fees whatsoever.  Ask a life insurance attorney or property insurance attorney about your delayed or denied insurance claim at no cost to you!  Call (800)403-5710 for a free case evaluation now.

We are best known for fighting against wrongful life insurance claim denials and bad faith insurance practices.  We have successfully collected benefits from many of the nation's largest and most powerful insurance companies, including but not limited to:

American Amicable Life Insurance Company
American Fidelity Life Insurance Company
American Income Life Insurance Company
American General Life Insurance Company (AIG)
Aviva Life Insurance Company
Bankers Life & Casualty Company
Catlin Insurance Group
Colonial Penn Life Insurance Company
Conseco Life Insurance Company
Erie Insurance Group
Fidelity & Guaranty Life Insurance Company
Foremost Insurance Group
Globe Life & Accident Insurance Company
Great American Insurance Group
Guardian Life Insurance Company of America
Indiana Farm Bureau Insurance Company
Infinity Property & Casualty Corporation
Liberty Mutual Insurance Group
Lincoln Heritage Life Insurance Company
Lincoln National Life Insurance Company
Massachusetts Mutual Life Insurance Company
Metropolitan Life Insurance Company (MetLife)
Minnesota Life Insurance Company
New York Life Insurance Company & AARP
Northwestern Mutual Life Insurance Company
Primerica Life Insurance Company
Prudential Insurance Company
Reliance Standard Life Insurance Company
Reliastar Life Insurance Company (ING)
State Farm Life Insurance Company
The Hartford Financial Services Group
The Independent Order of Foresters
The Standard Insurance Company
United Insurance Company
U.S. Financial Life Insurance Company
USAA Casualty Insurance Company

Has Your Life or Property 
Insurance Claim Been Delayed or Denied?  
Get Your Free Case Evaluation:

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Don't give up without a fight.  Ask an experienced life and property insurance lawyer about your delayed or denied insurance claim today.

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[Main Office]:  4959 SW 80th Avenue, Bell, FL  32619

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