Life Insurance Application Material Misrepresentations

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

When a loved one dies, the beneficiary named on the life insurance policy simply files a claim,  and waits for a check, right?

Well, not always. Especially, not if the policyholder dies within the two-year contestability period. That is, within two years of the date the policy went into effect.

This two year  window serves as something of a "fact check" period for the insurer since life insurance policy premiums are based on things like age  and health, a policy seeker may be tempted to leave out information, or in some cases, outright lie to get a lower premium.

Remember, the  life insurance company is looking for reasons not to pay out so if your loved one passes away less than two years after the policy is purchased,  you can bet they will scour every nook and cranny looking for misrepresentations in the policy application.

And they have two years to come up with something.

But the key to refusing a payout is proof of “material” misrepresentation. It must be a serious enough omission or mistake that it would have changed the insurer's decision about issuing the policy, or setting a premium.

For example, if you bleach your grey hair blond, and you report your hair color as blond, on the application, that's not a material misrepresentation.

However, if you fail to mention a cancer diagnosis or congestive heart failure,  all bets are off. Chances are the insurance company will fight hard to deny the claim.

If you're trying to collect what's rightfully yours, don't go it alone. Call an attorney who knows how to fight those insurance companies and win.

You can reach Miami Insurance Life 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].