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 Arizona. 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 Arizona. You can expect the following from your Arizona 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 Arizona 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 Arizona 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 Arizona has life insurance laws to help protect consumers. Here is a summary of some of these Arizona 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 20 of the Arizona Revised Statutes is the primary regulating force behind the insurance industry within the state of Arizona, but other legal provisions have also been adopted as consumer protection laws. The Arizona Department of Insurance 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 Arizona 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 Arizona 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.
- Protection of personal information. State laws require that insurance companies safeguard your personal information and protect your privacy. Except in very limited circumstance, your insurer cannot release your private information without your consent. Each company is responsible for implementing its own system of privacy protection, so you should check with your insurer or the terms of your policy for specifics.
- Timely payment on claims. When a life insurance claim is filed, an Arizona 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. If the death benefit claim is not settled in a timely manner, the insurance company is required to pay accrued interest on the proceeds.
- Your benefits are guaranteed even if the insurer goes out of business. Life insurance policies that are current are backed by the Arizona Life and Disability Insurance Guaranty Fund. You must be up-to-date on paying your premiums, and the insurer must be properly licensed to operate in Arizona. In the event that your life insurance company becomes insolvent, we can work with the Guaranty Fund 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 Arizona life insurance attorney.