When it comes to life insurance policies in Missouri, the concept of “material misrepresentation” plays a pivotal role in determining the validity of a policy. Understanding what constitutes a material misrepresentation can help policyholders and beneficiaries navigate potential disputes with insurance companies. This article delves into the legal framework, examples, and implications of material misrepresentation in Missouri life insurance law.
At the Saxton Law Firm, our Missouri business life insurance lawyers are ready to help you with any life insurance dispute. Get in touch today to see how we can help.
Learn About Saxton Law Firm Practice Areas
Contact Saxton Law Firm for a FREE Review
Legal Definition of Material Misrepresentation
Under Missouri law, a material misrepresentation is defined as a false statement or omission made by the insured during the application process that significantly impacts the insurer’s decision to issue the policy. According to Missouri Revised Statutes Section 376.580, a misrepresentation is not deemed material unless it has directly contributed to the event or contingency on which the policy is based. For instance, if the insured fails to disclose a pre-existing medical condition that later leads to their death, this omission could be considered a material misrepresentation.
The statute also emphasizes that whether a misrepresentation is material is ultimately a question for the trier of fact to decide. This means that each case is evaluated on its unique facts and circumstances.
Examples of Material Misrepresentation
To better understand the concept, let’s explore some examples non-material and material misrepresentations:
- Non-Material Misrepresentation: Suppose an applicant inaccurately reports their weight on the application form, but their cause of death is unrelated to their weight. In this case, the misrepresentation is unlikely to be considered material.
- Material Misrepresentation: If an applicant fails to disclose a diagnosis of cancer and later passes away due to the disease, this omission would likely be deemed material. The insurer could argue that the undisclosed condition directly influenced their risk assessment and decision to issue the policy.
Implications for Policyholders and Beneficiaries
Material misrepresentation can have serious consequences for both policyholders and beneficiaries. If an insurer discovers a material misrepresentation, they may deny a claim or even void the policy altogether. This can leave beneficiaries without the financial support they were counting on during a difficult time.
However, not all misrepresentations lead to claim denials. Missouri law provides some protections for policyholders. For example, if the misrepresentation did not contribute to the insured event, the insurer may not have grounds to deny the claim. Additionally, the burden of proof lies with the insurer to demonstrate that the misrepresentation was material and that it influenced their decision-making process.
How to Avoid Material Misrepresentation
To minimize the risk of disputes, applicants should:
- Provide Accurate Information: Be truthful and thorough when completing the application form. Double-check all details to ensure accuracy.
- Disclose Medical History: Include all relevant medical conditions, even if they seem minor or unrelated to the policy.
- Ask Questions: If you are unsure about what information to include, consult with the insurance company or a legal professional.
Seeking Legal Assistance in Missouri
If you or your loved ones face a claim denial due to alleged material misrepresentation, it is crucial to seek legal advice. Experienced attorneys can review your case, assess the validity of the insurer’s claims, and help you navigate the appeals process.
In Missouri, an experienced life insurance claim denial attorney can provide valuable guidance and representation.
READ MORE: Steps to Take After a Life Insurance Claim is Denied in Missouri
Just because an insurer says you made a material misrepresentation does not make it so. Many companies are looking for reasons to deny your claim, and are hoping you won’t fight back. We can review your case pursue the compensation you are owed.
At Saxton Law Firm, our Missouri life insurance claim denial lawyers are ready to help you. Contact Saxton Law Firm for a FREE case review!