Life Insurance Overview
Protecting Your Future
At Dorian Law, we understand that life insurance is a crucial safety net for you and your family's financial well-being. It provides peace of mind, knowing that you are protected. But what happens when a life insurance claim is delayed or denied?
That's where we come in.
Why is Dorian Law’s Approach to Life Insurance Claims so Effective?
We approach life insurance claims with compassion, expertise, and unwavering dedication. We understand the emotional and financial challenges you face when a claim is denied, and we're here to guide you through the process, ensuring your rights are protected and your loved ones receive the benefits they deserve.
Life Insurance companies hate the life insurance lawyers at Dorian Law because we have a track record of creating new law that favors our clients. From California to Virginia, Florida to Washington, our attorneys have taken denied life insurance claims that other lawyers could not handle and achieved success.
A former client said it best: “If you are looking for some help with your legal issues, I would strongly encourage you to reach out to this firm or Brent and tell them your story and see if they could help!”
“My life insurance case was handled in what I found to be a very honest and professional manner.
My questions were addressed and I was able to get through the process, confident that I had highly competent attorneys looking out for my best interests.
Dealing with the loss of a spouse is difficult enough, so having attorneys that are not only extremely knowledgeable, but also understanding of my situation was a blessing.”
“I highly recommend Brent! After my father died and I realized that there was some issues with his life insurance, I started “law firm shopping” as it were….Brent was quite kind during what was a very tough time in my life. He listened to my story, gave advice, and took action once I hired them. He was professional, yet courteous. He took care of everything and made sure to keep me in the loop during the critical moments of my case….Brent was responsive, detail-orientated, and a fierce fighter (which is needed during these types of situations). He “goes to the mat” for his clients and I am most appreciative!”
“Brent Brehm accepted to help me when other lawyers rejected me....Throughout the course of his representation he communicated with me exceptionally well by either email or phone calls. I am extremely pleased with the fast results….I would without hesitation recommend Brent Brehm and….I would strongly encourage you to reach out…and tell them your story and see if they can help!”
This page is designed to provide you with a summary understanding of life insurance, your policy, and your rights as a beneficiary. We believe that informed clients are empowered clients. While this information is for general knowledge, please remember that every life insurance claim is unique. If you are facing difficulties with a life insurance claim, the experienced team at Dorian Law is here to provide the deep industry knowledge and compassionate representation you deserve.
Below are sections covering:
Common Reasons for Life Insurance Claim Denials
Types of Life Insurance Policies
Understanding ERISA and Life Insurance Claims
Breach of Fiduciary Duty
Understanding Interpleader Actions in Life Insurance
How We Can Help
Common Reasons for Life Insurance Claim Denials
Life insurance claims can be denied for various reasons, including:
Misrepresentation or Fraud: The insurance company may allege that the policyholder misrepresented information on their application, such as their health history or lifestyle habits.
Policy Lapse: The policy may have lapsed due to non-payment of premiums.
Exclusions: The death may be excluded from coverage, such as suicide within a certain timeframe or death caused by dangerous activities.
Contestability Period: If the death occurs within the contestability period (usually the first two years of the policy), the insurance company may investigate the claim more thoroughly and deny it if they find discrepancies.
Types of Life Insurance Policies
We handle claims for various types of life insurance policies, including:
Term Life Insurance: Provides coverage for a specific period (term), such as 10, 20, or 30 years.
Whole Life Insurance: Offers lifelong coverage and often includes a cash value component that grows over time.
Universal Life Insurance: Provides flexible premiums and death benefits, allowing you to adjust the policy as your needs change.
Group Life Insurance: A single contract that covers an entire group of people. Typically, the policy is offered by an employer or another large-scale entity, such as an association or labor organization, and provides guaranteed coverage below set amounts.
Accidental Death and Dismemberment (AD&D) Insurance: Pays benefits if the death is caused by an accident.
Understanding ERISA and Life Insurance Claims
The Employee Retirement Income Security Act of 1974 (ERISA) is a federal law that governs many employer-sponsored benefits, including life insurance plans. ERISA has specific rules and regulations that can significantly impact your rights if your life insurance policy is governed by it.
When ERISA Applies
ERISA generally applies to life insurance plans offered by private-sector employers to their employees. If your life insurance policy is part of an employer-sponsored benefits package, it's likely governed by ERISA.
When ERISA Doesn't Apply
ERISA typically doesn't apply to:
Individual life insurance policies purchased outside of an employer-sponsored plan
Life insurance policies offered by government entities or churches
Breach of Fiduciary Duty
Under ERISA, the people who manage and administer your life insurance plan have a fiduciary duty to act in your best interests. This means they must:
Act with prudence and care
Avoid conflicts of interest
Provide accurate information about the plan
If the plan fiduciaries breach their duty, they can be held liable for any resulting losses.
Examples of Breach of Fiduciary Duty
Providing misleading or inaccurate information about the plan
Denying benefits without a reasonable basis
Acting in their own self-interest rather than the interests of the plan participants
Remedies for Breach of Fiduciary Duty
If you believe your plan fiduciaries have breached their duty, you may be able to seek remedies, including:
Equitable Surcharge (money)
Reformation of the Plan
Obtaining an injunction to stop the breach
Understanding Interpleader Actions in Life Insurance
At Dorian Law, we know that receiving the proceeds from a life insurance policy after the death of a loved one can be a straightforward process. However, disputes can arise regarding who is entitled to those benefits. In these cases, the insurance company might file an interpleader action.
What is an Interpleader Action?
An interpleader action is a lawsuit filed by a life insurance company when there are conflicting claims to the death benefit. Essentially, the insurance company asks the court to determine the rightful beneficiary. This protects the insurance company from the risk of paying the benefits to the wrong person and facing multiple lawsuits.
When Do Interpleader Actions Occur?
Interpleader actions often arise in situations such as:
Multiple Beneficiaries: The policyholder may have named multiple beneficiaries without clearly specifying how the proceeds should be divided.
Changes in Beneficiary Designations: There may be questions about the validity of a change in beneficiary, especially if it occurred close to the policyholder's death or if there are concerns about their mental capacity or undue influence.
Divorced or Separated Couples: If the policyholder named their former spouse as the beneficiary and didn't update the policy after the divorce, there may be a dispute with the current spouse or other family members.
Creditor Claims: Creditors of the deceased may claim a right to the life insurance proceeds.
How Does an Interpleader Action Work?
In an interpleader action, the insurance company:
Files a lawsuit naming all potential claimants as defendants.
Deposits the disputed funds with the court.
Asks the court to determine the rightful beneficiary or beneficiaries.
The court then resolves the dispute and orders the funds to be distributed accordingly.
Don’t Face an Interpleader Action Alone
If you're involved in an interpleader action, it's crucial to have experienced legal representation to protect your rights and interests. At Dorian Law, we can help you:
Understand the interpleader process and your legal options
Gather evidence to support your claim to the life insurance benefits
Present persuasive arguments to the court
Negotiate with other claimants to reach a settlement, if possible
Litigate the case effectively to ensure you receive the benefits you deserve
Navigating an interpleader action can be complex and emotionally challenging. With Dorian Law by your side, you can have confidence that your rights are protected and your interests are represented effectively. Contact us today for a free consultation.
How We Can Help
If your life insurance claim has been denied, or if you suspect a breach of fiduciary duty, don't give up. We can help you:
Determine if ERISA Applies: We'll review your policy and circumstances to determine if your claim is governed by ERISA.
Review Your Policy: We'll carefully examine your policy to identify potential loopholes or weaknesses in the insurance company's denial.
Gather Evidence on Appeal: We'll collect all necessary evidence to support your claim, including medical records, financial documents, and witness statements.
Negotiate with the Insurance Company: We'll engage in negotiations with the insurance company to seek a favorable settlement.
Litigate Your Case: If necessary, we'll file a lawsuit and aggressively represent you in court to secure the benefits your loved ones deserve.
Frequently Asked Questions (FAQ) About Life Insurance
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A: Hourly rates are available, but we often work on a contingency fee basis for life insurance claim cases. This means you typically don't pay us attorney fees upfront. Instead, our fee is a percentage of the benefits we recover for you. This ensures our interests are aligned with yours – we only get paid if we win for you.
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A: Do not give up! Contact Dorian Law or another experienced law firm immediately. We offer free consultations where we review your denial letter, policy, and circumstances to assess the reasons for denial and advise you on your next steps. This includes your appeal options under ERISA (if applicable) or state law. Time limits for appeals are often strict, so acting quickly is crucial. For more information, read our page on Effective Life Insurance Appeals.
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A: The contestability period is typically the first two years of a life insurance policy. During this time, the insurance company can investigate the application for misrepresentations. If they find material misrepresentations, they may deny a claim, even if the policyholder has passed away. After the contestability period, it becomes much more difficult for the insurer to deny a claim based on application errors.
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A: A material misrepresentation is a significant untruth or omission of fact on your insurance application that, had the insurer known the truth, would have affected their decision to issue the policy or the premium they charged. Insurers often use alleged misrepresentations as a reason to deny claims, but we can challenge these denials.
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A: Policy timelines can vary, but it's best to file a claim as soon as possible after a death. Contact the insurance company promptly to notify them and inquire about their specific claims process and deadlines. While policies may allow time, delays can complicate the process.
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A: It depends on the policy's suicide clause. Most policies have a clause excluding suicide within the first two years of the policy. If the death occurred after this period, suicide is usually covered.
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A: Insurance companies are entitled to conduct a reasonable investigation of a claim. However, excessive or unreasonable requests can be a tactic to delay or discourage claims. Dorian Law can assess the insurer's requests and ensure they are legitimate and not overly burdensome. Read our page on submitting Life Insurance Claims for more information.
Don't face a life insurance claim denial alone. We are here to listen, advise, and, if needed, fight for the benefits you deserve. Tell us your story and see if we can help. The consultation is free.