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What should you do if your life insurance claim has been denied?

The attorneys at Life Insurance Law work to recover full compensation for life insurance beneficiaries in Alaska. If your life insurance claim has been denied or delayed, contact us today for a free case evaluation.

Our life insurance lawyers live and work in Alaska. You can expect the following from your Alaska life insurance lawyer:

  • A free case evaluation where we go over the facts of your claim in detail.
  • Explanation of all legal terms and documents.
  • An attorney who will contact your provider to get a delayed claim paid fast.
  • Full disclosure on court costs and attorney fees before you agree to retain counsel.

Some claims will be denied by providers based on material misrepresentation. This means that if the policyholder provided false information, such as age or health history, a claim may be rejected within the first two years of the policy. Beyond the two-year period, a misstatement in age can alter the premiums or reduce the benefits to reflect the correct age of the policyholder. However, sometimes Alaska insurance companies get their facts wrong. If you believe an insurance company is wrongly claiming material errors in the policy, an Alaska life insurance lawyer can help you appeal the decision and may still be able to recover the full amount of your claim.

How do state insurance laws in Alaska protect you?

The U.S. Constitution gives the federal government the power to regulate interstate commerce. In the case of life insurance policies, the federal government has largely allowed the states to take the duties of regulating the insurance industries and of providing consumer protection.

The state of Alaska has life insurance laws to help protect consumers. Here is a summary of some of these Alaska life insurance laws. Of course, you should definitely contact us to discuss your case specifically and see how state laws impact your particular situation.

Title 21 of the Alaska Statutes is the primary regulating force behind the insurance industry within the state of Alaska, but other legal provisions have also been adopted as consumer protection laws. The Alaska Division of Insurance  (a part of the Department of Commerce, Community, and Economic Development) provides oversight for the insurance business in the state.

The most important rules that may apply in your case are:

  • The “free look” period. Any Alaska resident buying a life insurance policy has 10 days to back out of coverage and receive a full refund of any premiums he has paid for a new life insurance policy. This period is a full 30 days for a replacement policy. A variable life policy may not receive a full refund if canceled during the free look period, depending on changes in the value of investments.
  • 30-day payment grace period. This ensures that an Alaska life insurance policy cannot be canceled due to a reasonably late payment. The policyholder has 30 days to make the payment, during which time the provider cannot cancel the policy or deny coverage.
  • Timely payment on claims. When a life insurance claim is filed, an Alaska insurance provider is required to pay the amount to the beneficiary promptly. Failing to settle claims in a prompt, fair, and equitable manner can result in serious penalties against the insurer. Payments are typically made within two months after the provider receives proof of death.
  • Your benefits can be guaranteed even if the insurer goes out of business. Life insurance policies that are current are backed by the Alaska Life and Health Insurance Guaranty Association. This guarantee is limited to $300,000 maximum for lost death benefits and $100,000 maximum for lost cash surrender, even if the deceased person was insured for a larger amount or covered under multiple policies. Variable life insurance policies are not covered by this guarantee. You must be up-to-date on paying your premiums, and the insurer must be properly licensed to operate in Alaska.

Why you should work with us

The attorneys at Life Insurance Law work with clients across the country to recover denied and delayed life insurance claims. Whether we agree on a settlement or take your case to court, our attorneys will fight for your best interests every step of the way.

If your insurance claim has been denied or delayed, call our offices today to get advice from an Alaska life insurance attorney.