When we set up life insurance for the protection of our loved ones, we want to have peace of mind knowing that our sudden passing would not cause our family any financial hardship. We hope that our loved ones will receive the benefits they deserve in a timely manner and without excessive complications. Unfortunately, insurance companies will look for any loopholes or mistakes that could invalidate or reduce a claim in order to save them from having to pay out benefits. Getting a denial notice can be frustrating and cause great anxiety for the future. Spouses or families who may have just suffered the passing of their loved one may feel defeated and overwhelmed, not knowing where to turn for help if they receive a denial on their family member’s insurance policy claim. If you are considering purchasing a life insurance policy, take the time to contact an experienced New Orleans life insurance attorney from New Orleans Legal, LLC to help you prevent a life insurance claim denial or help you if you have already received a denial from an insurance company.
Why Do Insurance Companies Deny A Claim in the State of Louisiana?
Insurance companies are profit-driven and if there is the slightest doubt that an insurance claim is valid, they will look for reasons and excuses to deny your claim. Some of the reasons why an insurance company may deny a claim right away can include:
- The policyholder provided false information
- The type of death was not covered by the policy
- The policyholder missed premium payments
- The beneficiary is a minor
There can be other reasons why an insurance provider would deny a life insurance claim. However, even in claims where a policyholder provided false information or missed some premium payments, you could still recover benefits, according to the Insurance Information Institute (III).
Contact the Louisiana Department of Insurance
Generally, if you have any grievances with your insurance company, including denial of a claim, you can turn to the Louisiana Department of Insurance (LDI) for advice and assistance. A good first step can be filling in the complaint form on the department’s website. While they will investigate your complaint and may take administrative action against the insurance company, the department cannot provide you with legal advice or assistance.
Do I Have Legal Recourse If I Receive A Life Insurance Claim Denial?
Louisiana law affords certain protections to those who are the beneficiaries of life insurance policies. This, together with the assistance of a life insurance dispute attorney, can work to the benefit of life insurance beneficiaries. According to Louisiana Revised Statute § 22: 1973, insurers in Louisiana may not deny a claim unfairly and must make an effort to settle any claims within a reasonable timeframe. Not doing so could hold them liable for acting in bad faith. The statute further mentions that a claimant could be entitled to damages, including possible penalties and attorney’s fees assessed against the insurance company. If your life insurance claim was denied for any reason, do not give up. You could have legal recourse and should speak to an experienced Louisiana life insurance attorney as soon as you can to pursue your rightful benefits under the law.
Learn How A New Orleans Life Insurance Attorney Can Help a Life Insurance Claim Denial
If you receive a denial of a life insurance claim, or if you want to prevent a life insurance claim denial in the future, consider visiting with experienced New Orleans life insurance attorney Peter Diiorio at New Orleans Legal, LLC. New Orleans Legal, LLC is prepared to help you in any way possible, whether that means helping you ensure that a life insurance claim is never denied in the future, or it means negotiating aggressively with an insurance company. Call New Orleans Legal, LLC for a free consultation and receive answers to your questions and legal concerns regarding life insurance claims at (504) 897-5580.