Denied Principal Financial Life Insurance Claim

Failure to disclose a criminal background on a life insurance application can be a basis for a denied claim if the insurance company determines that the omission was material and relevant to the underwriting process. Our life insurance lawyers fight all denied life insurance claims. Here are some ways undisclosed criminal history can result in a denied life insurance claim, along with examples:

1. Misrepresentation on the Application:
   • When applying for life insurance, applicants are typically required to provide information about their criminal history, including arrests, convictions, and incarceration. If an applicant intentionally withholds or misrepresents their criminal background, it can be considered a material misrepresentation. For example, if a person has a felony conviction for insurance fraud but does not disclose it, and later dies under circumstances related to insurance fraud, the claim may be denied due to the intentional omission of the criminal history.
2. Investigation During the Contestability Period:
   • If undisclosed criminal history is discovered during this period and is deemed material to the underwriting process, the claim may be denied. For instance, if the insured person failed to disclose a history of arson convictions, and their death is related to a fire incident, the insurance company may deny the claim.
3. Policy Exclusions or Limitations:
   • Some insurance policies may contain specific exclusions or limitations related to undisclosed criminal history. If the undisclosed criminal history is directly related to the cause of death, and the policy contains relevant exclusions, the insurance company may use this as a basis for claim denial. For example, if the insured person had a history of violent crimes and died in a homicide, the claim might be denied if the policy has an exclusion for deaths resulting from criminal activities.
4. Concealing Material Facts:
   • Insurance applications often require the disclosure of material facts that could influence the underwriting decision. If a criminal background is material to the risk assessment and is concealed, it can lead to a denied claim. For instance, if the applicant has a history of multiple DUI (driving under the influence) convictions but does not disclose them and later dies in a car accident while intoxicated, the claim may be denied based on the material omission of the DUI convictions.