Have you ever heard of Qualification at time of claim? How can Insurance companies deny a claim like that?

Question

How can an insurance company deny a life insurance claim after a person has put good faith in that company by paying their premiums? Isn't that illegal?

Answer 1

When an insurer sells you a policy you have to make certain truthful statements on your application (like you don't smoke). They base their actuarial assumptions and quote your premiums based on that statement.

But if you lied on the policy then there never was a valid contract for the insurance in place.

You don't put any 'good faith' into the company by paying premiums, in fact you've acted in 'bad faith' if you try to collect a claim based on a falsehood stated earlier in the policy period.

They have every right to deny the claim. And, every other policyholder of that company should be thankful because it means they would have had to pay more premiums to cover claims made under false pretenses.

Answer 2

There could have been misrepresentations on the original application ( one example) so the insurance company takes the money, has the use of the money, and later in life will not pay the claim. Agreed, this is not quite right, but the law sides with big companies. They get the laws made to their satisfaction.

Answer 3

"Qualification at time of claim" typically refers to clarifying that the insured event occurred within the coverage period (you didn't crash your car and then rush to buy collision insurance on your way home), or that stated terms in the policy were met (eg life insurance issued to a non-smoker paying non-smoker premiums would "unqualify" if it turned out the policyholder succumbed to smoking-induced lung cancer).

Do you have more details on what you are actually asking?

Answer 4

that is unhappy and as bill Mahr says we are "stupid". The coverage firms are following the regulations set up with the help of the Congress and that they pay in basic terms a small component of the over $3 billion* that the abode and Senate individuals take from all the lobbyists. even even with the undeniable fact that while something vast comes alongside, like the prescription drug bill they develop donating with the help of two hundred%*, that become in 2003. with the help of ways the fee of it become in basic terms $500 million over a 10 twelve months era, yet while they signed it the CBO got here back adn reported it would fee over 1000 billion! now the scientific sector has larger their donating with the help of sixty 5% to over 0.5 one billion, so as that they are incredibly going to be dealt with. the two the wellbeing care bill and the prescription drug deal the place thrown on the tax payers and additionally the elderly and absolutely everyone utilising a gaggle of medicine have expenses tremendously much as much as 70% develop. the super drug companies, working in the back of PHARMA, who has donated $a hundred and twenty million to run categorized advertisements for the Obamacare software are making a mint. nevertheless super severe fee of patented drugs and then the third international pills advertising for $4. No telling what proportion will drop from taking that stuff as qc sucks, i'm confident they set the pills in air conditioned warehouses earlier sending over here to be packaged in Florida. as far as medicare and being quantity one, a minimum of they might declare being quantity one at something. thank you for the link to the crooks. Have an remarkable 2009!

Answer 5

well it depends how long as the owner had the policy before they passed away what did they pass away from re post with this information or send me an IM and I can give you a better answer every policy has a contestability period usually 2 to 3 years