2007-12-26 22:32:13 · 4 answers · asked by Anonymous in Business & Finance ➔ Insurance
Life insurance companies pay all legitimate claims. They won't pay on a policy where the applicant misrepresented material facts.
Simple example, your doctor tells you that you have cancer. You decide it would be nice to leave your family a nice "nest egg" so you immediately apply for life insurance and don't disclose the fact that your doctor just told you that you have less than a year to live. The insurance company will not pay the claim.
The flip side of the story is you have had the policy for a year or two and your doctor gives you the same unexpected bad news. This time the insurance company pays the claim.
2007-12-27 01:57:29 · answer #1 · answered by Tom Z 7 · 1⤊ 0⤋
yes they try to avoid the payment if evidence is not hard and not guaranteed. and they have the reasons to do so because there have been lot of insurance fraud eg. killing a family member to claim insurance fee, and the like...
2007-12-27 01:11:15 · answer #2 · answered by ~o0o~ 7 · 0⤊ 1⤋
To a point they do, and that is mostly involving potential fraud. Life insurers generally pay out after they have been assured that there is no attempt to defraud involved.
2007-12-26 23:29:17 · answer #3 · answered by acermill 7 · 1⤊ 1⤋
Of course they try not to pay out, particularly if they can avoid publicity.
2007-12-26 22:49:28 · answer #4 · answered by checkmate 6 · 0⤊ 1⤋