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How Insurance Companies Deny, Delay, Confuse and Refuse Life Insurance Claims

The U.S. insurance industry has trillions of dollars in assets, they have average profits of over $30 billion a year, and pay their CEOs more than any other industry. But insurance companies still engage in dirty tricks and unethical behavior to increase their bottom line even further.

Some of America’s most well-known insurance companies, the same ones that spend billions on advertising to earn your trust, have learned how to deny claims, delay payments, confuse consumers with double talk and insurance terms.

These are some of the tricks of the trade:

Denying Claims
Some of the nation’s biggest insurance companies, Allstate, AIG, and State Farm among others, have denied valid claims to boost their bottom lines. These companies reward employees who successfully denied claims, replaced employees who would not, and have even, engaged in fraud to avoid paying claims.

Confusing Consumers
Insurance contracts are some of the most incomprehensible contracts a consumer is ever likely to see. More than half of all states have enacted plain English laws for consumer contracts, yet many Americans still do not fully understand the risks they are subject to.

Threatening Claimants
There are numerous consumers that have received what appears to be a law suite, when they are expecting a check for a claim. Insurance companies will serve claimants with papers that appear to be court documents, stating that they have done an investigation and found evidence of fraud. The insurance company then threatens to sue the claimant for more than the benefit expected to be received.

Enforcement of conditions never previously enforced
Accepting an insured’s premiums without requiring him to submit evidence of good health or alerting him it is needed for the policy to issue, only to enforce the policy’s good health provisions years later to argue the policy was never legally issued (after the insured’s death and a claim is made).

Billing miscues/errors
Where a life insurer has issued multiple policies to the same insured, we have seen insurers manipulate the accounting of premium payments to their advantage to credit all or most of the payments to one of the policies and claim the other policy lapsed for nonpayment when it had been paid in-full.

Inappropriate policy lapses: A life insurer sends a bill for the policy premium that the insured is too sick to notice and pay, refuses to send a grace period/lapse notice to the insured and then, after the premium is not paid, improperly lapses the life insurance policy just before the insured dies.

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We are dedicated to leveling the playing field. We use our more than 20 years of experience in the Life insurance
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