If you are the beneficiary on an insurance policy and you have received notice that your claim has been denied after the death of the insured, it is difficult to know what to do next. Life insurance is intended to provide financial support for family, friends, dependents, business partners and loved ones after a policyholder has passed away. Named beneficiaries count on getting paid so they have the financial resources to move on with their lives, and a denial can put an end to future plans and leave beneficiaries coping with stress in addition to grief.It is important to know that you do not have to accept the insurance company’s refusal to pay as the final word. An appeal for insurance claim denial is possible, but you need to understand how the system works and make a convincing case to the insurance company, judge or jury. Call Us to speak with an attorney who is dedicated to fighting for beneficiaries to help them recover life insurance proceeds.
Appealing an Insurance Claim Denial
When an insurance company delays or denies a life insurance claim, the insurer must provide notification and give you a reason for the denial. In some cases, the insurer does not have sufficient information about the deceased or the death in order to determine whether to pay on the policy. In other circumstances, the insurer may argue that there was a problem with the application or that premiums were not paid on time.Often, once you know the reason for the denial, you can act to remedy the problem. You can let the insurer know you do not believe the claim denial was appropriate and that you wish to appeal for insurance claim denial. You can provide the necessary documentation to show why you should be paid and the insurer may agree and give you the money you need.Having an attorney negotiate on your behalf with the insurance company can be invaluable when you appeal for insurance claim denial. Your lawyer knows the law and can go head-to-head with the experts and attorneys the insurance company has hired to protect its interests. An attorney can also assist in gathering necessary documentation and evidence to convince the insurer to pay.If the insurance company still refuses to pay beneficiaries the death benefit the policy was supposed to provide, the next step is to file a civil lawsuit for bad faith. A bad faith lawsuit can be filed in cases where the insurer acted unreasonably or unfairly in handling your claim, in violation of the implied good faith requirement that exists in every insurance contract.You will need to prove that the insurer acted unreasonably in order to get the judge or jury to order the insurer to pay you the money to which you are entitled under the policy. In bad faith cases, you may be able to receive payouts that exceed policy coverage limits.