Houston Life Insurance Denial Attorney
Intended to protect loved ones and family members after a person’s death, life insurance policies can cover funeral costs, remaining medical bills, mortgages, and a host of other financial burdens. As a life insurance denial attorney in Houston TX, Kevin Powers knows these policies can reassure a person that their family won’t need to worry about a financial crisis in the event of their death.
Some families may have problems with life insurance companies refusing to pay their claims. If this happens, Powers Law Firm can help. We can examine your case of life insurance bad faith and make recommendations for handling your denied claim.
Bad Faith Actions
When a person diligently pays life insurance policy premiums only for their family to be denied rightful payment by the insurance company, there may be grounds for a life insurance bad faith claim. The insurance provider has a duty to provide the promised coverage in a prompt manner, and when this and other responsibilities are avoided, compensation may be due. Bad faith actions involving a life insurance policy can include:
- Failing to fairly determine the cause, manner, or circumstances of death – including a contradiction with medical or official records
- Failing to pay the full amount of coverage to the correct beneficiary
- Claiming that the policy offered less or different coverage
- Failing to respond to a claim in a timely manner
What is the Two Year Contestability Period?
Life insurance companies have a two-year contestability period in which they can deny payment of insurance if an issue is found with an application. If the insured party dies within two years of completing the application, the life insurance claim can be denied. When these two years are over, the company is typically required to pay the value of the policy.
Problems that can arise with an application usually involve medical history, but can revolve around any incorrect or seemingly misleading data. The common reasons Houston insurance lawyers find that insurance companies delay payment are:
- Failure to provide adequate documents to support a claim
- Failure to provide needed authorizations for release of medical information
- Contesting a policy
- Competing claims
Get Help From A Life Insurance Denial Attorney in Houston TX
For an insurance company to refuse payment based on this contestability period, there must be an issue with the application. If an application did not contain any errors of misinformation, the loved ones of the deceased may be able to bring a bad faith claim against the insurance company. Refusing to pay the value of the policy is not acceptable. Contact Powers Law Firm, a life insurance denial attorney in Houston TX, for a free consultation about your case.