Author: rainmakereditor

Insurance topics

Insurance Topics: Attempts to Rescind Policies Are Not Always Successful

As we age and take on more and more in life, financial responsibilities just continue to grow, and insurance topics figure into many conversations. Along with all the typical consumer household expenses (and debt) such as the mortgage, student loans, auto payments, and credit cards that keep us beholden to a range of ongoing payments, insurance is another critical purchase that must be made and then maintained financially; in fact, in some cases—like auto insurance—it is required. But even if law doesn’t force you to purchase other types of insurance, they are critical for financial protection, as well as peace of mind.

Once you have explored all your options regarding an insurance policy, discussed different coverages with your agent, and taken the plunge to buy a policy that seems like a good fit for your needs, you probably feel in control and able to go on about your business knowing that your future is protected in the case of a catastrophe. Other times though, you may feel like you are at the mercy of the insurance company, even when you fulfill everything asked on your end—which mainly means filling out all paperwork truthfully and signing on the dotted line—and paying those premiums (which often may be hefty!) on time.

Frustration usually sets in if you have had a car accident or had a claim for property damage or professional liability, and the insurer is delaying payment or even denying it altogether for a policy that was in effect. And while it is always your option to terminate an insurance policy, you may be surprised to find out that the insurance company can actually attempt to rescind a policy from their end. Usually when something like that happens, the insurance company is claiming that there was incorrect or fraudulent information in the original application for insurance. They may even accuse you of lying or hiding information so that you could have the advantage of seeing a policy go into effect that might otherwise have been rejected.

A successful rescission of your insurance policy by the insurer means that essentially, it is as if it was never put in place to begin with. Your premiums should be refunded, and you should be notified quickly regarding the process. Such activity can be extremely disturbing if a rescission takes place after you filed a claim, and especially if you know you were honest in filling out your application. While the onus is on the insurer to check out your information before putting the policy in place, all too often they may perform investigations after a claim has been filed and rescind a policy to avoid paying out.

If you suspect your insurance company may be attempting to rescind your policy simply to avoid paying for the claim, contact the attorneys at the Bolender Law Firm.  If a dispute over a claim cannot be easily resolved through a call or written communication, our attorneys will advocate on behalf of policyholders through litigation, arbitration, or non-binding mediation. Our attorneys are experienced in representing clients in state and federal courts, at both the trial and appellate level. Call us at 310-320-0725 now or submit an easy consultation request online. We are here to help!

life insurance claim

Five Reasons Your Life Insurance Claim May Be Denied

Unless you work within the insurance industry, you probably find purchasing insurance to be somewhat of an odious task–not to mention figuring out a life insurance claim. Most of us are forced to own more than one type of policy, whether it is required by law or for our own peace of mind in knowing that if something happens, we are covered. Life insurance is a bit different though. In most cases, you do not have to own any if you don’t want to, and even if you lack direct descendants, leaving behind life insurance helps with funeral and burial costs, any outlying debts, and more.

No one enjoys thinking about their own mortality, and life insurance certainly brings the topic to the forefront. It may be an important part of your estate after death though, not only covering your final expenses but also leaving behind an inheritance for those who succeed you in death and may also rely on you for income. Unfortunately, collecting on life insurance may be a hassle for your beneficiaries later. Your surviving spouse or children may have been relying on it to survive after you are gone, but in some cases, it could be denied because of reasons like the following:

  1. Coverage was not what you expected or was not put in place as you expected—and this is another good reason why you should review all your insurance policies at least once a year.
  2. Information on your original application was not completely truthful—often this is just due to the applicant guessing about something or perhaps being forgetful, but if the insurance company can find a reason to deny your claim, they will. The application most likely will be scoured for any inaccuracies, so be certain to take your time and be sure about what you are telling the insurance company; for example, a pre-existing issue that was not disclosed could cause denial of a claim.
  3. Premiums were not paid. Keeping up with insurance payments can be challenging, but your policy could lapse even if you miss one premium.
  4. Suicide—historically, this is usually a reason for life insurance claims to be denied; these days, the rule is normally that a claim regarding suicide would be denied if the policy was less than two years old.
  5. Lack of beneficiaries listed on the life insurance policy—obviously this is critical to dispensing life insurance funds and reinforces the reason to review your policy every year.

If you need help reviewing your insurance policy, or if you suspect your insurance company may be denying your claim in bad faith, contact the attorneys at the Bolender Law Firm.  If a dispute over a claim cannot be easily resolved through a call or written communication, our attorneys will advocate on behalf of policyholders through litigation, arbitration, or non-binding mediation. Our attorneys are experienced in representing clients in state and federal courts, at both the trial and appellate level. Call us at 310-320-0725 now or submit an easy consultation request online. We are here to help!