Our life insurance lawyers in Minnesota handle delayed and denied life insurance claims, AD&D claims, beneficiary disputes and Minnesota interpleader lawsuits.
A motor vehicle accident death can potentially lead to a denied life insurance claim in various scenarios. While each life insurance policy may have specific terms and conditions, here are some common situations where a claim might be denied:
Material Misrepresentation: If the policyholder or insured individual provided false or misleading information during the application process, especially regarding their health, lifestyle, or driving history, the insurance company may deny the claim. For example, if the insured person failed to disclose a history of reckless driving or DUI convictions, it could be grounds for denial.
Contestability Period: Most life insurance policies have a contestability period, typically the first two years after the policy is issued. During this time, the insurer has the right to investigate and contest the validity of the policy if any material misrepresentations or omissions are discovered. If such issues are found, the insurer may deny the claim.
Exclusionary Clauses: Some life insurance policies have specific exclusionary clauses related to motor vehicle accidents. For example, if the policy explicitly excludes coverage for accidents caused by drunk driving or racing, and the insured individual dies in such an accident, the claim may be denied.
Suicide Clause: Life insurance policies often have a suicide clause that limits or excludes coverage for suicide within the first one or two years of the policy. If the insurer suspects that the motor vehicle accident was, in fact, a suicide attempt, they may investigate and potentially deny the claim.
Policy Lapse: If the policyholder failed to pay premiums, and the policy lapsed before the motor vehicle accident occurred, there may be no coverage in force at the time of death, resulting in a denied claim.
Intentional Acts: If the insurance company has reason to believe that the motor vehicle accident was an intentional act on the part of the insured individual, they may deny the claim. Intentional acts are typically not covered by life insurance policies.
Exceeding Policy Limits: Life insurance policies have specified death benefit amounts. If the insured individual’s death benefit exceeds the policy’s maximum coverage limit, the insurance company will only pay up to the policy limit, resulting in a partial claim or denial of the excess amount.
Excluded Drivers: If the motor vehicle accident involved a driver who was specifically excluded from coverage under the policy (e.g., a family member or friend who was explicitly excluded due to a high-risk driving history), the insurance company may deny the claim related to that individual.
Criminal Activity: If the insured individual was engaged in criminal activity at the time of the motor vehicle accident, and it contributed to the accident or their death, the insurance company may deny the claim.
Failure to Cooperate: If the beneficiaries fail to cooperate with the insurance company’s investigation or do not provide requested documentation and information in a timely manner, the claim processing may be delayed or denied.
It’s essential to thoroughly understand the terms and conditions of your life insurance policy