A life insurance company has up to two years to contest a life insurance policy. This gives the provider that time period in which to review the coverage for any lies, misrepresentations, or mistakes made in granting the policy. It provides the insurer an opportunity to protect against fraud and analyze the truth of the insured’s statements about their life or health.
At the Saxton Law Firm, we understand how life insurance companies use the contestability period, and how they often use it incorrectly. Many try to alter the deal after the fact to save money, or deny claims for the same reason. We help sort through this complicated legal area and protect your interests to a life insurance claim.
What is a Contestability Period?
The contestability period is the time in which a life insurance company may review and dispute the accuracy of information provided by the insured in creating the policy. It is time in which the insurer can review your application for potential fraud or misrepresentation. If the insurance company believes it found any lies or mistakes, it has the ability to alter or deny the claim through the appropriate process. This two-year period generally begins once the claim is signed and becomes effective.
Many life insurance companies use this contestability period to look for issues it can use to deny claims. Three situations typically arise after a review of the policy:
- No problems are discovered and the life insurance company does not dispute the claim.
- The insurer discovers information that, if it had known prior to approving the claim, it would have raised the premiums for that claim. In these cases, the insurer typically takes the difference out of the ultimate death benefit.
- The insurer finds information it believes is enough to deny the life insurance claim.
What is the Missouri Contestability Period for Life Insurance Claims?
The life insurance contestability period in Missouri is two years. After that time, it becomes difficult to deny a life insurance claim based on inaccurate information in the initial application. However, it does not stop a life insurance company from attempting to deny a claim on other grounds.
Important things to understand about the contestability period include:
- An insurer is not permitted to deny benefits just because of an error or accidental omission in the application, but it could alter the policy is specific ways.
- A provider may reopen underwriting during the contestability period if it discovers hidden or misrepresented facts.
- Missouri law requires insurers to perform adequate due diligence in order to avoid these problems in the first place.
What Do I Do if the Life Insurance Company Tries to Deny My Claim?
If the life insurance provider attempts to deny your claim, you have several options. First, speak to a skilled Missouri life insurance attorney about your case. They understand the many challenges you face, strategies for success, and how to handle every step of the process.
With your attorney’s assistance, potential solutions include, but are not limited to:
- Investigating the reason for the claim denial and challenging the denial directly
- Negotiating with the insurance company to clear up any misunderstandings
- Mediating the dispute with a neutral third party
- Filing a claim denial appeal through the insurance company’s internal processes
- Filing a life insurance claim denial lawsuit to enforce your rights through litigation
READ MORE: The Importance of Life Insurance: Why Kansas City Families Should Consider It
At Saxton Law Firm, our life insurance denial attorneys know how to help. We help you with the contestability period and any other issues you face. Contact Saxton Law Firm for a FREE case review!