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 Montana. If your life insurance claim has been denied or delayed, contact us today for a free case evaluation.
Here is what you can expect from your Montana 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 life insurance 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, a Montana 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 Montana 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 Montana has life insurance laws to help protect consumers. Here is a summary of some of these Montana 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 33 of the Montana Code is the primary regulating force for the insurance industry within the state of Montana, but other legal provisions have also been adopted as consumer protection laws. The Office of the Commissioner of Securities and 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 Montana 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 a Montana 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, a Montana insurance provider is required to pay the amount to the beneficiary promptly. Regulations specify a maximum 60 days for settlement after all required paperwork has been filed. Payments are typically made within a month after the provider receives proof of death. Failing to settle claims in a prompt, fair, and equitable manner can result in serious penalties against the insurer. If the claim takes longer than 30 days to settle, the insurance company is required to pay accrued interest on the proceeds.
- Bankruptcy protection. Your benefits are guaranteed even if the insurer goes out of business. Life insurance policies that are current are backed by the Montana Life and Health Insurance Guaranty Association. You must be up-to-date on paying your premiums, and the insurer must be properly licensed to operate in Montana. 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 a Montana life insurance attorney.