Life insurance provides financial relief and stability when families need it most — after the death of a spouse, parent or other loved one. The last thing you need when grieving a loss is to learn that your life insurance claim was unreasonably denied.

At Haffner & Morgan, LLP, our insurance bad faith practice helps victims fight back against illegal or unethical practices by insurance companies. To better understand your rights and legal options, contact us to speak with an attorney today.

Life Insurance Denial Of Coverage And Claims

Here are just a few examples of how life insurance companies act in bad faith:

♦Example 1: You purchase life insurance after speaking with an insurance agent about the benefits of a certain plan. The agent misrepresents what the policy actually covers, and you don't learn about this problem until you make a claim and the claim is denied.

California law generally requires insurers to honor claims and coverage even if they were based on an agent's misrepresentation and negligence.

♦Example 2: Your spouse has had a life insurance policy for years. When he or she dies, you submit a claim to the insurer. After some time, the insurer contacts you and says it has discovered "material misrepresentations" in your spouse's medical history or other supporting documents. As such, it is rescinding the policy and will not honor your claim.

While insurance companies can rescind policies based on discoveries of misrepresentation, rescinding a policy only after a claim is submitted might suggest that the insurer may have been looking for any reason to deny the claim.

♦Example 3: A family member dies and you submit a life insurance claim. The insurance company responds that the way in which your family member died is considered to be non-compensable as spelled out in the policy exclusions. You read the contract and discover that the policy exclusions section is ambiguous and vaguely worded.

Policy exclusions are standard in most life insurance policies, but they cannot be so vague as to give the insurance company too much interpretive discretion.

Have Questions About Your Own Case? Call Us For A Free Initial Consultation.

Haffner & Morgan, LLP, is located in San Diego and serves clients throughout Southern California. To discuss your insurance matter with one of our skilled lawyers, call us at 800-511-7834, or send us an email.