Life Insurance Bad Faith: Policyholders Wrongly Rejected Over Pre-Existing Conditions
Using Pre-Existing Conditions As An Excuse To Deny Life Insurance Claims
That's exactly what some life insurance companies do, according to Scott, who told us:
When it comes to life insurance, there are always disputes in the contestable period of coverage which is the first two years after the policy has been issued. In many cases, the insurance company will say, 'Well, you didnt tell us of these prior conditions.' In fact, I have a case right now in which the application asked, 'Have you ever been treated for cancer, a heart condition, high blood pressure (all the big ones) or any other medical defect?' Then it says, 'Dont include things like the common cold.'
Well, the insured had slept wrong on their shoulder and they went in for about four treatments with a chiropractor just for that soreness and then they were fine. They never put it down on the policy as it wasn't a major event and their claim was denied because of it. Outrageous.
Has Your Life Insurance Policy Been Rescinded?
If your life insurance policy has been rescinded during the two year contestable period over a pre-existing condition, make sure you look to a bad faith insurance attorney for a technical analysis of your situation as your insurer may have had its own interests at heart and acted in bad faith. You may be entitled to life insurance bad faith damages such as monies you spent as a result of the rescission, emotional damages or possibly punitive damages.