Life Insurance Policy Rescission and Claim Denial

J.P. Gonzalez-Sirgo
Founder of J.P. Gonzalez-Sirgo, P.A.

It is not uncommon for a life insurance company to rescind a life insurance policy.  Life insurance policy rescission is basically the cancellation of the insurance policy restoring the insured and insurer to their original position before the policy took effect.  Life insurance companies generally have a two (2) year window (known as the "contestability period") to rescind a policy if the insurance company determines that the insured misrepresented material information on the application for insurance during the underwriting process.  Material information is defined to include information that would have affected the life insurance company's decision to set a premium or to accept the risk of insuring the applicant had they known about the subject information before issuing the policy.  Material information can include prior health and medical information or prior criminal convictions, for example.

When a policyholder dies during the two year contestability period and the beneficiary files for the life insurance benefits, the insurance company will delve deeper into the information provided on the application for insurance in an attempt to discover information that was not disclosed during the underwriting process to justify rescinding the policy and denying the claim leaving the beneficiaries empty handed. This is referred to as "post-claims underwriting".    

It is critical to take the time to properly complete the life insurance application including truthfully answering the questions on the application.  Not doing so can result in the beneficiary receiving a rescission notification and deniual letter instead of a much needed check.

You can reach Miami 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 J.P. directly at [email protected].

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