Life Insurance Overview
Protecting Your Future
At Dorian Law, we understand that life insurance is a crucial safety net for you and your family’s financial well-being. It provides peace of mind, knowing that you are protected. But what happens when a life insurance claim is delayed or denied?
That’s where we come in.
This page is designed to provide you with a summary understanding of life insurance, your policy, and your rights as a beneficiary. We believe that informed clients are empowered clients. While this information is for general knowledge, please remember that every life insurance claim is unique. If you are facing difficulties with a life insurance claim, the experienced team at Dorian Law is here to provide the deep industry knowledge and compassionate representation you deserve.
On This Page
Why is Dorian Law’s Approach to Life Insurance Claims so Effective?
We approach life insurance claims with compassion, expertise, and unwavering dedication. We understand the emotional and financial challenges you face when a claim is denied, and we’re here to guide you through the process, ensuring your rights are protected and your loved ones receive the benefits they deserve.
Life Insurance companies hate the life insurance lawyers at Dorian Law because we have a track record of creating new law that favors our clients. From Los Angeles to Miami, Virginia to Washington, our attorneys have taken denied life insurance claims that other lawyers could not handle and achieved success.
A former client said it best: “If you are looking for some help with your legal issues, I would strongly encourage you to reach out to this firm or Brent and tell them your story and see if they could help!”
“Highly Recommend
Brent Brehm is an excellent attorney. He assisted me in my case against a life insurance company. He is both knowledgeable and professional. With his expertise, my case was resolved in a very timely manner. I was extremely pleased with the settlement. I highly recommend Brent Brehm.”
Common Reasons for Life Insurance Claim Denials
Life insurance claims can be denied for various reasons, including:
Misrepresentation or Fraud: The insurance company may allege that the policyholder misrepresented information on their application, such as their health history or lifestyle habits.
Policy Lapse: The policy may have lapsed due to non-payment of premiums.
Exclusions: The death may be excluded from coverage, such as suicide within a certain timeframe or death caused by dangerous activities.
Contestability Period: If the death occurs within the contestability period (usually the first two years of the policy), the insurance company may investigate the claim more thoroughly and deny it if they find discrepancies.
Types of Life Insurance Policies
We handle claims for various types of life insurance policies, including:
Term Life Insurance: Provides coverage for a specific period (term), such as 10, 20, or 30 years.
Whole Life Insurance: Offers lifelong coverage and often includes a cash value component that grows over time.
Universal Life Insurance: Provides flexible premiums and death benefits, allowing you to adjust the policy as your needs change.
Group Life Insurance: A single contract that covers an entire group of people. Typically, the policy is offered by an employer or another large-scale entity, such as an association or labor organization, and provides guaranteed coverage below set amounts.
Accidental Death and Dismemberment (AD&D) Insurance: Pays benefits if the death is caused by an accident.
Understanding ERISA and Life Insurance Claims
The Employee Retirement Income Security Act of 1974 (ERISA) is a federal law that governs many employer-sponsored benefits, including life insurance plans. ERISA has specific rules and regulations that can significantly impact your rights if your life insurance policy is governed by it.
When ERISA Applies
ERISA generally applies to life insurance plans offered by private-sector employers to their employees. If your life insurance policy is part of an employer-sponsored benefits package, it’s likely governed by ERISA.
When ERISA Doesn’t Apply
ERISA typically doesn’t apply to:
Individual life insurance policies purchased outside of an employer-sponsored plan
Life insurance policies offered by government entities or churches
Breach of Fiduciary Duty
Under ERISA, the people who manage and administer your life insurance plan have a fiduciary duty to act in your best interests. This means they must:
Act with prudence and care
Avoid conflicts of interest
Provide accurate information about the plan
If the plan fiduciaries breach their duty, they can be held liable for any resulting losses.
Examples of Breach of Fiduciary Duty
Providing misleading or inaccurate information about the plan
Denying benefits without a reasonable basis
Acting in their own self-interest rather than the interests of the plan participants
Remedies for Breach of Fiduciary Duty
If you believe your plan fiduciaries have breached their duty, you may be able to seek remedies, including:
Equitable Surcharge (money)
Reformation of the Plan
Obtaining an injunction to stop the breach
Understanding Interpleader Actions in Life Insurance
At Dorian Law, we know that receiving the proceeds from a life insurance policy after the death of a loved one can be a straightforward process. However, disputes can arise regarding who is entitled to those benefits. In these cases, the insurance company might file an interpleader action.
What is an Interpleader Action?
An interpleader action is a lawsuit filed by a life insurance company when there are conflicting claims to the death benefit. Essentially, the insurance company asks the court to determine the rightful beneficiary. This protects the insurance company from the risk of paying the benefits to the wrong person and facing multiple lawsuits.
When Do Interpleader Actions Occur?
Interpleader actions often arise in situations such as:
Multiple Beneficiaries: The policyholder may have named multiple beneficiaries without clearly specifying how the proceeds should be divided.
Changes in Beneficiary Designations: There may be questions about the validity of a change in beneficiary, especially if it occurred close to the policyholder's death or if there are concerns about their mental capacity or undue influence.
Divorced or Separated Couples: If the policyholder named their former spouse as the beneficiary and didn't update the policy after the divorce, there may be a dispute with the current spouse or other family members.
Creditor Claims: Creditors of the deceased may claim a right to the life insurance proceeds.
How Does an Interpleader Action Work?
In an interpleader action, the insurance company:
Files a lawsuit naming all potential claimants as defendants.
Deposits the disputed funds with the court.
Asks the court to determine the rightful beneficiary or beneficiaries.
The court then resolves the dispute and orders the funds to be distributed accordingly.
Don’t Face an Interpleader Action Alone
If you’re involved in an interpleader action, it’s crucial to have experienced legal representation to protect your rights and interests. At Dorian Law, we can help you:
Understand the interpleader process and your legal options
Gather evidence to support your claim to the life insurance benefits
Present persuasive arguments to the court
Negotiate with other claimants to reach a settlement, if possible
Litigate the case effectively to ensure you receive the benefits you deserve
Navigating an interpleader action can be complex and emotionally challenging. With Dorian Law by your side, you can have confidence that your rights are protected and your interests are represented effectively. Contact us today for a free consultation.
How We Can Help
If your life insurance claim has been denied, or if you suspect a breach of fiduciary duty, don’t give up. We can help you:
Determine if ERISA Applies: We’ll review your policy and circumstances to determine if your claim is governed by ERISA.
Review Your Policy: We’ll carefully examine your policy to identify potential loopholes or weaknesses in the insurance company's denial.
Gather Evidence on Appeal: We’ll collect all necessary evidence to support your claim, including medical records, financial documents, and witness statements.
Negotiate with the Insurance Company: We’ll engage in negotiations with the insurance company to seek a favorable settlement.
Litigate Your Case: If necessary, we’ll file a lawsuit and aggressively represent you in court to secure the benefits your loved ones deserve.
Frequently Asked Questions (FAQ) About Life Insurance
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A: We often work on a contingency fee basis, meaning you pay nothing upfront—and we only get paid if we recover benefits for you. Hourly rates are also available in some cases. Our goal is to align our interests with yours: if you don’t win, we don’t get paid.
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A: Don’t give up. Many denials can be overturned with the right approach. Contact Dorian Law for a free consultation. We’ll review your denial letter, policy, and circumstances to assess your appeal options under ERISA or state law. Time limits are strict, so act quickly. Learn more on our Effective Life Insurance Appeals page.
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A: The contestability period is usually the first two years after a policy is issued. During this time, the insurer can investigate the application and deny claims based on alleged misrepresentations. After two years, the insurer generally must pay the claim unless there’s fraud. We frequently challenge improper denials during and after this period.
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A: A material misrepresentation is a significant inaccuracy or omission on the application—like misstating medical history—that would have changed the insurer’s decision to issue the policy or the premium. Insurers often misuse this term to deny claims. We know how to push back if there is misuse.
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A: Insurers can request reasonable documentation, but some go overboard to delay or intimidate. If you’re facing burdensome demands, we can step in to protect your rights and streamline the process. Learn more on our Life Insurance Claims page.
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A: If you are asking this questions, the answer is: the sooner, the better. You don’t have to wait for a denial to get help. We can advise on claims in progress, insurer delays, or concerns about eligibility. Early legal guidance gives you the strongest chance of success.
Don’t face a life insurance claim denial alone. We are here to listen, advise, and, if needed, fight for the benefits you deserve. Tell us your story and see if we can help. The consultation is free.