When a loved one dies, life insurance benefits can provide critical financial security. Unfortunately, some beneficiaries find themselves waiting weeks or months while the insurance company continues to request documents, investigate the claim, or simply fails to make a decision.
This raises an important question: Can you sue a life insurance company for taking too long to pay a claim?
In Florida, the answer may be yes, depending on the circumstances. An insurance company is entitled to conduct a legitimate investigation before paying a life insurance claim. But an insurer generally cannot use an investigation as an excuse to delay a valid claim indefinitely. Florida law also provides important protections concerning the settlement of life insurance claims, interest on death benefits, and insurer bad faith.
If your life insurance claim appears to be stuck in limbo, understanding the difference between a reasonable investigation and an unreasonable delay can help you determine what to do next.
How Long Does a Life Insurance Company Have to Pay a Claim in Florida?
There is not necessarily one universal number of days that applies to every Florida life insurance claim.
Florida Statute § 627.461 provides that a life insurance contract must provide for settlement when the policy becomes a claim upon the insured's death and the insurer receives due proof of death and surrender of the policy.
The practical timing of payment can depend on factors such as:
- Whether the insurer has received the death certificate and required claim forms;
- Whether the policy was in force when the insured died;
- Whether the death occurred during the policy's contestability period;
- Whether the insurer is investigating statements made in the insurance application;
- Whether there are competing beneficiaries;
- Whether the beneficiary designation is disputed;
- Whether an exclusion may apply;
- Whether the insured's manner or cause of death requires investigation; and
- Whether the policy is governed by federal law, such as ERISA, rather than solely by Florida insurance law.
An insurer may therefore have legitimate reasons for requiring additional time. The critical issue is often why the claim is delayed and what the insurer is actually doing during that time.
When Does a Life Insurance Claim Delay Become Unreasonable?
There is a major difference between an insurance company conducting a legitimate investigation and one simply allowing a claim to sit unresolved.
Warning signs of a potentially unreasonable life insurance delay may include:
- Repeated requests for documents you have already provided;
- Long periods without meaningful communication;
- Failure to explain what information is still needed;
- Continually assigning the claim to different adjusters or examiners;
- Requests for records that appear unrelated to the claim;
- Failure to respond to emails, letters, or telephone calls;
- Repeated statements that the claim remains "under review" without further explanation;
- Continuing an investigation after the necessary information appears to have been obtained;
- Refusing to provide a coverage decision; or
- Delaying payment despite an apparently clear obligation to pay.
Florida's Unfair Insurance Trade Practices Act identifies certain improper claims practices, including failing to acknowledge and act promptly upon claim communications and denying claims without reasonable investigations based on available information when the statutory requirements are met.
A delay alone, however, does not automatically establish bad faith. The circumstances surrounding the delay matter.
Why Do Life Insurance Companies Delay Claims?
Some delays are legitimate. Others deserve closer scrutiny.
Contestability Investigations
Many life insurance policies contain a contestability provision. If the insured dies during the contestability period, the insurer may investigate the original application to determine whether there were material misrepresentations or omissions.
This can involve obtaining medical records, prescription histories, financial information, or other documents.
The existence of a contestability investigation does not necessarily mean the claim will be denied. But beneficiaries should pay attention to whether the insurer is actively investigating the claim or merely using the investigation to postpone a decision.
Beneficiary Disputes
Payment can also be delayed when two or more people claim entitlement to the same death benefit.
Examples include disputes involving:
- An ex-spouse and current spouse;
- A recently changed beneficiary;
- Children from different marriages;
- Allegations of undue influence;
- Questions concerning the insured's capacity when changing beneficiaries; or
- Conflicting beneficiary designation forms.
In some cases, the insurance company may file an interpleader lawsuit, deposit the insurance proceeds with the court, and ask a judge to determine who is legally entitled to the money.
Missing Documentation
An insurer may legitimately require proof of death, claim forms, beneficiary identification, or other documents before processing the claim.
Beneficiaries should keep copies of everything submitted and document when and how it was sent.
Investigation of the Cause of Death
Certain circumstances may require additional investigation, particularly when the cause or manner of death potentially implicates a policy exclusion or other coverage issue.
The key question remains whether the investigation is reasonable, relevant, and progressing toward a coverage decision.
Can You Sue the Life Insurance Company for Delaying Payment?
Potentially.
The appropriate legal claim depends on the policy, the insurer's conduct, the reason for the delay, and whether the insurer has actually breached its obligations.
Breach of Contract
A life insurance policy is a contract.
If the insured satisfied the policy requirements, coverage was in force, the beneficiary is entitled to the proceeds, and the insurer wrongfully refuses or fails to pay benefits that are due, the beneficiary may potentially pursue a breach of contract action seeking the policy proceeds.
A beneficiary does not necessarily have to wait forever for the insurer to issue a formal denial before considering legal options. An attorney can examine the particular circumstances and determine whether the insurer's conduct has reached the point where legal action may be appropriate.
Insurance Bad Faith
Some cases may involve more than a contractual dispute.
Florida Statute § 624.155 provides a statutory civil remedy in specified circumstances, including when an insurer fails to attempt in good faith to settle a claim when, under all the circumstances, it could and should have done so had it acted fairly and honestly. Florida's statute also establishes procedural requirements for pursuing a statutory bad-faith claim, including a Civil Remedy Notice and a statutory cure period.
Importantly, a slow claim is not automatically a bad-faith claim. Florida law expressly provides that mere negligence alone is insufficient to constitute bad faith.
Whether a particular delay supports additional remedies requires a careful analysis of the insurer's conduct and applicable law.
Does the Insurance Company Owe Interest When Payment Is Delayed?
Florida law contains an important provision concerning interest on life insurance death benefits.
Under Florida Statute § 627.4615, when a policy provides for payment of death proceeds in a lump sum, the payment must include interest at a statutorily specified rate beginning from the date the insurer receives written due proof of death.
This means that even when an insurer ultimately pays the claim, the beneficiary may need to determine whether the payment properly includes the interest required by Florida law.
Beneficiaries should therefore keep evidence showing exactly when the insurer received the death certificate, claim forms, and other proof-of-death documentation.
What If the Insurance Company Keeps Asking for More Documents?
Do not assume every request must automatically be complied with without examining what is being requested.
An insurance company may legitimately need documents to investigate a claim. But repeated, excessively broad, irrelevant, or duplicative requests may warrant scrutiny.
If you receive another document request, consider asking the insurer in writing:
- What specific documents remain outstanding?
- Why are those documents necessary to evaluate the claim?
- What documents has the insurer already received?
- Is anything else preventing the insurer from making a coverage determination?
- When does the insurer expect to complete its investigation?
Written communication creates a record of both the insurer's requests and your efforts to cooperate.
What Should You Do If Your Life Insurance Claim Is Taking Too Long?
If you believe your claim has been unnecessarily delayed, consider taking the following steps.
1. Request a Written Status Update
Ask the insurer to identify exactly what is preventing payment.
Do not settle for repeated generic statements that the claim is simply "under review."
2. Create a Claim Timeline
Document important dates, including:
- Date of the insured's death;
- Date the claim was submitted;
- Date the insurer received proof of death;
- Dates documents were requested;
- Dates you supplied those documents;
- Dates you called or emailed the insurer;
- Names of representatives you spoke with; and
- Explanations given for the delay.
This timeline can become important if a dispute develops.
3. Keep Copies of Everything
Preserve the policy, application, beneficiary designation, claim forms, death certificate, correspondence, emails, letters, and any other relevant documents.
4. Ask for the Reason for the Investigation
If the insurer says the claim is being investigated, ask what issue is actually being investigated.
Understanding whether the issue involves contestability, alleged misrepresentation, beneficiary rights, an exclusion, or something else can help determine the appropriate response.
5. Consider Speaking With a Florida Life Insurance Claims Attorney
You do not necessarily need to wait until the insurer formally denies the claim.
An attorney experienced with disputed life insurance claims can review the policy, correspondence, claim history, and reasons for the delay and determine whether intervention may be appropriate.
Sometimes attorney involvement can also force the insurer to clarify its position: What exactly is preventing this claim from being paid?
Can a Lawyer Speed Up a Delayed Life Insurance Claim?
No lawyer can guarantee that an insurer will immediately pay a claim. However, legal representation can change how a delayed claim is handled.
A life insurance attorney may:
- Review the policy and claim file;
- Identify the legal issues causing the delay;
- Communicate directly with the insurer;
- Challenge unnecessary or irrelevant document requests;
- Demand an explanation for the delay;
- Provide missing evidence;
- Address alleged application misrepresentations;
- Analyze beneficiary disputes;
- Determine whether litigation is appropriate;
- Seek payment of benefits that are contractually owed; and
- Evaluate whether additional remedies may be available under Florida law.
The objective is not merely to ask the insurer to "move faster." It is to determine why payment has not been made and what legal action can be taken to resolve the problem.
Frequently Asked Questions About Delayed Life Insurance Claims
How long is too long for a life insurance claim?
There is no single answer applicable to every claim. A complicated beneficiary dispute may legitimately take longer than an uncontested claim with complete documentation. The issue is whether the insurer has a reasonable basis for the delay and is actively working toward a decision.
Can an insurance company investigate a life insurance claim?
Yes. Insurers may investigate legitimate coverage issues, particularly claims involving the contestability period, application representations, beneficiary disputes, or possible exclusions.
Can a life insurance company keep a claim under investigation indefinitely?
An insurer's ability to investigate does not give it unlimited freedom to postpone a decision without justification. A prolonged delay without meaningful explanation may warrant legal review.
Can I sue before my life insurance claim is formally denied?
Depending on the circumstances, potentially. Whether a lawsuit is ripe will depend on the policy, the insurer's obligations, its conduct, and the facts surrounding the delay. A lawyer can determine whether further demands should be made or litigation should be considered.
Does Florida require interest on life insurance death benefits?
Florida Statute § 627.4615 generally requires lump-sum death claim payments to include interest calculated from the date the insurer receives written due proof of death, subject to the statute's terms.
Is delaying a life insurance claim automatically bad faith?
No. Delay by itself does not automatically establish bad faith. Florida's bad-faith statute specifically provides that mere negligence alone is insufficient. The insurer's reasons for the delay and its overall claim-handling conduct must be evaluated.
Florida Life Insurance Claim Taking Too Long? We Can Review the Delay
When you are the beneficiary of a life insurance policy, months of unanswered questions can create unnecessary financial and emotional strain.
You may be told the claim is "pending," "under investigation," or "still being reviewed." But at some point, you deserve to understand what is holding up the claim and what needs to happen for the insurer to make a decision.
Attorney J.P. Gonzalez-Sirgo represents beneficiaries in Florida life insurance disputes, including delayed claims, denied claims, contestability disputes, alleged material misrepresentations, beneficiary disputes, ERISA claims, and other high-value life insurance matters.
If a life insurance company is taking too long to pay your claim, contact J.P. Gonzalez-Sirgo, P.A. for a confidential consultation. We can review the policy and claim history, determine why the insurance company has not paid, and evaluate the legal options available to pursue the benefits you may be entitled to receive.
Have you or someone you know need help with a life insurance claim? Contact Florida Life Insurance Claims Lawyer J.P. Gonzalez-Sirgo by dialing his direct number at (786) 272-5841, calling the main office at (305) 461-1095, or Toll Free at 1 (866) 71-CLAIM or email Miami Attorney Gonzalez-Sirgo directly at jp@yourattorneys.com or by text at (305) 929-8935.
This article is for informational purposes only and does not constitute legal advice.
