What should you do if you have your life insurance claim denied?
The attorneys at Life Insurance Law work to recover full compensation for life insurance beneficiaries in Arkansas. 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 Arkansas. You can expect the following from your Arkansas 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.
Many claims will be denied by providers based on material misrepresentation. This means that the policyholder provided false information, such as age or health history, that makes the policy invalid. In these cases, an Arkansas life insurance lawyer can help you appeal the decision and may still be able to recover the full amount of your claim.
How am I protected by state insurance laws in Arkansas?
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 Arkansas has life insurance laws to help protect consumers. Here is a summary of some of these Arkansas 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 23 of the Arkansas Code (Chapters 60-109) is the primary regulating force behind the insurance industry within the state of Arkansas, but other legal provisions have also been adopted as consumer protection laws. The Arkansas Insurance Department provides oversight for the insurance business in the state.
The most important rules that may apply in your case are:
- No legally mandated “free look” period. Most Arkansas insurance companies will give customers a reasonable period — anywhere from seven to 30 days — to change their minds after obtaining life insurance. Check with your insurance provider or examine your policy for the option your insurer offers. If you cancel within this “free look” period, you are entitled to receive a full refund of any premiums you have paid. It’s important to remember that, even though insurance companies are not required by state law to offer this option, those companies which do offer a trial period must apply it fairly and consistently to all similar customers.
- 30-day payment grace period. This ensures that an Arkansas 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 Arkansas insurance provider is required to pay the amount to the beneficiary within two months. Failing to settle claims in a prompt, fair, and equitable manner can result in serious penalties against the insurer.
- Your benefits are guaranteed even if the insurer goes out of business. Life insurance policies that are current are backed by the Arkansas Life and Disability Insurance Guaranty Association. You must be up-to-date on paying your premiums, and the insurer must be properly licensed to operate in Arkansas. In the event that your life insurance company becomes insolvent, we can work with the Guaranty Association to compensate your policy. 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.
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 Arkansas life insurance attorney.