LIFE INSURANCE CLAIMS
Life insurance policies are agreements between a policyholder and an insurance company which provides for the lump sum payment of a death benefit to a named beneficiary upon the death of the policyholder.
An insurance company can deny payment of a death benefit due to allegations that the policyholder has provided false or inaccurate answers to questions in a life insurance application. For instance, the insurance may seek to deny payment of a death benefit due to an alleged material misrepresentation where it is claimed that the policyholder inaccurately described their medical history. To deny the payment of a death benefit, not only must the insurance company prove that there was a misrepresentation, but also that the misrepresentation was material.