Life Insurance Post-Claims Underwriting
When a loved one with a life insurance policy passes away, the last thing beneficiaries in mourning need is a dispute with the insurance company. If a life insurance policy has been in effect for less than two years, however, the insurance company will likely do everything possible to delay and deny the life insurance claim.
As a result, beneficiaries may find themselves in an unexpected battle with the insurance company instead of receiving the funds that are legally due because of an insurer’s post-claims underwriting investigation.
What Is a Post-Claims Underwriting Investigation?
As the name implies, a post-claims underwriting investigation occurs after a claim has been filed. Once a beneficiary files the claim, only then will the insurance company procure relevant information and revist its original underwriting decision.
For reference, underwriting refers to the insurance company's process for evaluting an application for insurance and determining whether to issue the policy, at what limits and at what premium.
Factors like the applicant’s health, background and other pertinent information are considered before a final underwriting decision is made. Ordinarily, the underwriting process is completed before the insured’s policy is issued and takes effect, not after a claim is filed.
Why Would an Insurance Company Conduct a Post-Claims Underwriting Investigation?
The law in Florida permits an insurance carrier to conduct a post-claims underwriting investigation if the insured dies within two years of policy inception.
During this investigation, the insurance company will pore over every detail in the application for insurance post-claim, looking for reasons that justify a claim denial and policy cancellation.
Section 627.409 of the Florida Statutes authorizes an insurer to deny claims or cancel a policy if the insured’s application misrepresents a fact that was material to the insurance company’s risk.
However, a beneficiary should not accept the insurance company's denial of the claim based on its post-claims underwriting investigation as gospel. An experienced life insurance claims lawyer may be able to assist in reversing the denial.
You can reach Miami 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 Attorney Gonzalez-Sirgo directly at [email protected].