Life Insurance Disputes in Florida: Common Causes

Life insurance serves as a crucial safety net, offering financial protection to loved ones in times of need. However, the road to claiming these benefits in Florida isn't always smooth. Life insurance disputes can arise, causing stress and uncertainty during already challenging times.

1. Misrepresentation or Fraud

One of the causes of life insurance disputes in Florida is misrepresentation or fraud during the application process. Insurers may allege that policyholders have withheld critical information or provided false details to secure coverage. After a claim is filed, insurers may deny payouts, sparking disputes over the materiality and accuracy of the information provided by the policyholder in the application.

2. Policy Lapses

Life insurance policies require regular premium payments to remain active. Failure to pay premiums on time can result in policy lapses, leaving beneficiaries without the intended financial protection. Disputes may arise when policyholders believe they've made payments or when there are discrepancies in payment records between insurers and policyholders.

3. Beneficiary Designations

Designating beneficiaries is a crucial aspect of life insurance policies. Disputes may occur when there's ambiguity or disagreement over who the rightful beneficiaries are. This can lead to legal battles, especially in cases involving multiple marriages, blended families, or changes in personal relationships that haven't been reflected in the beneficiary designations on file.

4. Contestability Period

Most life insurance policies include a contestability period during which insurers can investigate and potentially deny claims based on misrepresentations or omissions made by the policyholder. Disputes may arise if insurers use this period to scrutinize claims excessively or if beneficiaries feel unfairly targeted due to technicalities or minor discrepancies.

5. Policy Exclusions

Life insurance policies often come with exclusions that limit coverage under specific circumstances. For example, death resulting from suicide within a certain timeframe after policy issuance may not be covered. Disputes can occur if beneficiaries believe the exclusion shouldn't apply or if insurers interpret policy language differently from the policyholders' intentions.

Please contact Joel Ewusiak for legal assistance with your specific matter.