| Insurance, especially life insurance, can be a very | | | | misrepresentation" on the life insurance application. |
| confusing topic for most Americans. We often pay | | | | That misrepresentation may occur in the original |
| various insurance premiums our whole lives. | | | | application for insurance or in a later amendment to |
| Understanding the nuts and bolts of your life | | | | the application. |
| insurance policies can benefit you and your family | | | | A material misrepresentation sufficient to deny a |
| greatly in the unfortunate event of your death or | | | | claim cannot be just any misstatement. Under many |
| the death of a family member. | | | | states' laws, a material misrepresentation is one that, |
| Life insurance comes in a bewildering array of | | | | if fully and truthfully disclosed, would have led to |
| variations. There's whole life insurance, variable life | | | | refusal by the insurance company to issue the life |
| insurance, and universal life insurance, all of which are | | | | insurance policy. Material misrepresentations |
| collectively known as cash value life insurance policies. | | | | accusations are commonly made about just about |
| With these policies, a portion of the premium you | | | | anything on the life insurance application including the |
| pay goes to purchase insurance coverage, while | | | | person's employment history, age, income, other |
| another portion is used as an investment. Taxes on | | | | insurance in force, whether or not they smoke |
| the investment portion of the policy are generally | | | | cigarettes, driving record, drinking history, hobbies, |
| deferred until you collect the proceeds. | | | | etc. The most commonly alleged misrepresentations |
| If you are married, especially if you have dependent | | | | involve the applicant's heath and medical history. |
| children, or if you have debts such as a mortgage, | | | | Recovering money from an insurance company that |
| car payment, or credit card balances, your family | | | | denies a life insurance claim is no easy task. Many life |
| could be at serious financial risk if you should die | | | | insurance claims are paid without much fuss on the |
| suddenly and your income were suddenly no longer | | | | part of the insurer, but there are times when claims |
| available. Spouses are often left unable to make all | | | | are delayed and denied. The claims that are subject |
| the payments, raise the children, educate them, etc. | | | | to the most suspicion are the ones filed in the first |
| on a single income. Life insurance is your family's | | | | two years the policy is in force. In many states, the |
| protection against the drastic lifestyle changes that | | | | insurance company can deny the claim by |
| occur in the event of your death. | | | | retroactively rejecting the application if it finds that |
| We tend to think that if we buy life insurance and | | | | the application contained a "material |
| pay the premiums, then upon our death, collecting | | | | misrepresentation". |
| the life insurance will be easy for our beneficiary, but | | | | Like most insurance companies, life insurance |
| that is not always the case. Life insurance companies | | | | companies are regulated on the state level. If you |
| review each claim carefully before parting with their | | | | have questions regarding your claim, its delay or its |
| money and some life insurance claims are denied. | | | | denial, contact your state department of insurance |
| Apart from fraud in the policy on the part of the | | | | and an experienced life insurance claim denial |
| policy holder, the most common ground life insurers | | | | attorney. |
| use to deny claims is that there was a "material | | | | |