Taking out a life insurance policy should leave anyone with peace of mind and safety in the knowledge that when we pass away, our nearest and dearest are provided for. However, even if a policyholder diligently paid premiums for many years, their family could be left with nothing when they die. Policyholders of life insurance may be unaware that how they die can play a major role in determining whether loved ones will receive the benefits they deserve. Knowing the reasons why life insurance may not pay out a death benefit to your beneficiaries can help you understand whether or not you have the legal right to compensation. An experienced life insurance attorney at New Orleans Legal, LLC can help ensure that your loved ones have the best chance to receive the compensation they are owed under the law.
Which Causes of Death May Not Be Covered in Louisiana?
Having a life insurance claim denied when you might already be dealing with your loved one’s passing can feel like a slap in the face. Your family member may have paid decades worth of premiums into a policy only to have it come to nothing when they pass. Louisiana life insurance policies may not cover certain manners of death, which can include:
- Death due to the policyholders’ criminal activity
- Death while under the influence of alcohol
- Death due to a risky or dangerous hobby
- Death due to certain pre-existing health conditions
- Death due to suicide
- Death due to childbirth
- Death due to a natural disaster such as a hurricane
- Death during the contestability period
- Death due to murder by the beneficiary
Causes of death may not be the only reason why an insurer could deny a life insurance claim. Other reasons can include a policyholder holder dishonestly filling in the application form or the policy has lapsed due to non-payment of premiums.
After rejecting your claim, the insurance company typically refunds any premiums and terminates the policy. However, it is important to note that beneficiaries may have legal recourse. If the insurance company rejected your claim for any reason, especially due to the cause of death of the insured, you should immediately explore your legal options. You could potentially contest a denial. An experienced and trusted life insurance attorney like Peter Diiorio at New Orleans Legal, LLC can help you fight for your rightful benefits.
Is My Insurance Claim Protected by Louisiana Law Regarding the Cause of Death of My Loved One?
Generally speaking, the state law in Louisiana does offer some protection to those who have their life insurance claims denied for whatever reason, including the manner of death of the policyholder. Louisiana Revised Statute § 22: 1973 specifically deals with the responsibility of life insurance to resolve any claims fairly and in a timely manner. Moreover, if you can show that an insurer omitted any relevant facts to the policyholder when the policy was established, you could potentially have legal recourse against an insurance provider in Louisiana.
Apart from state law, the Louisiana Department of Insurance provides general oversight of the insurance business in the state. The Louisiana DOI can investigate any complaints you might have against an insurance company. You can take action by filling in a form on the department’s website.
While certain state laws and government oversight can potentially provide help, you should consider contacting a life insurance dispute attorney as soon as possible when you find out that your claim was denied. An attorney can help to identify the particular laws and regulations that could offer you recourse for claiming your due.
How an Attorney Can Help if the Insurance Company Denies Your Claim Based on Cause of Death
Finding out that your loved one died due to a manner of death that is not covered by your life insurance policy can be a crushing blow. Apart from the devastating loss of your loved one, you may now also face the additional worry about potential future financial hardship. We understand that the shock of having your claim denied can be severe, especially if you thought you were financially protected by a life insurance policy.
Do not be disheartened after a denial of an insurance claim. Experienced attorney Peter Diiorio can negotiate with your insurance provider regarding a delayed or rejected claim. There may also be ways in which Louisiana state law could provide you with legal options. An experienced Louisiana life insurance attorney can help you appeal against unfair or unethical decisions and could potentially recover the entire amount of your insurance claim regardless of the cause of death of your loved one. Contact New Orleans Legal, LLC now to set up your appointment for a free consultation: (504) 897-5580.