Life insurance claims are not so much a matter of if but of when. When a person buys a life insurance policy that guarantees, upon their death, payment to a designated beneficiary, they expect the insurance company to live up to their obligation upon death. This expectation is especially important for wage earners in a household who realize the financial hardship and potential devastation that could occur to their family when they die. There is a particular “peace of mind” that comes with the purchase of a life insurance policy and the knowledge that one’s dependents will be taken care of upon the policyholder’s death. Unfortunately, insurance companies all too frequently fail to properly live up to their obligations regarding life insurance policies.
Life Insurance Bad Faith
Bad faith conduct by an insurance company on a claim for life insurance benefits is particularly devastating for the very same reason that the life insurance policy was purchased in the first place. In the greatest time of need when a family or beneficiary is dealing with the emotional void left by a loved one (who is likely to have been their financial support), the insurance company’s bad faith actions can destroy a family financially and otherwise.
It is not at all uncommon to see an insurance company commit bad faith in processing and handling claims for benefits under a life insurance policy. The attorneys at Heygood, Orr & Pearson have represented policy holders in lawsuits where insurance companies denied paying benefits that were clearly owed under life insurance policies. This is often seen by an insurance company claiming that the cause of death of an insured was not covered by the insurance policy or claiming that the policyholder was untruthful in the application process for the insurance policy. These reasons for denial of insurance benefits are often inaccurate and occasionally intentionally and fraudulently provided to the policyholder in hopes that the policyholder will simply accept the denial and not
- go though the appeals process for a denied claim and/or
- have the denial reviewed by an attorney who understands the obligations placed upon insurance companies when processing claims for life insurance benefits.
At Heygood, Orr & Pearson, we don’t tolerate such conduct.
There are many types of life insurance policies, all of which are subject to the good faith and fair dealing laws, which are in place to protect the insured and beneficiaries. Life insurance bad faith often includes:
- Failing to fairly or properly evaluate a claim, including fairly determining the cause and manner of death
- Failing to pay a beneficiary the life insurance benefits in a timely manner
- Failing to pay the correct or full amount of life insurance benefits to the beneficiary
- Claiming that the life insurance policy offered less or different coverage than what was agreed upon with the insured
- Engaging in other actions that work to deny a beneficiary some or all of the benefits in which they are rightfully entitled to
HO&P Will Fight for Your Rights
At Heygood, Orr & Pearson, we believe strongly that an insurance company who takes a person’s life insurance premium payments (for many years in most instances) in exchange for promising that they will pay a designated sum to such person’s family upon their death has a fundamental obligation to perform upon such promise. When they don’t, the lawyers at Heygood, Orr & Pearson are here to assist you.
If you believe you have been a victim of an insurance company wrongfully denying a legitimate claim for life insurance benefits after the death of a love one or otherwise engaging in bad faith in the handling of your claim, Heygood, Orr & Pearson has the resources, experience and knowledge to protect your rights in your time of need. Contact us for a free case evaluation.
