What Are Bad Faith Claims in Life Insurance Policies?
Life insurance policies are meant to provide financial security to beneficiaries when they need it most—after the loss of a loved one. Unfortunately, there are times when life insurance companies fail to fulfill their obligations, leaving beneficiaries struggling during an already difficult time. When an insurer acts in bad faith, beneficiaries may have legal options to recover the compensation they are owed.
At Gold, Khourey & Turak (GKT), we have been a trusted advocate for victims of bad faith insurance practices in Ohio, West Virginia, and Pennsylvania for over 45 years. Our experienced attorneys are committed to holding insurance companies accountable. If you want honest advice, GKT is the honest choice.
What Is a Bad Faith Claim in Life Insurance?
Insurance companies have a legal duty to act in good faith and deal fairly with policyholders and beneficiaries. Bad faith occurs when an insurer violates this duty by unfairly delaying, denying, or underpaying a valid life insurance claim.
Examples of bad faith actions in life insurance include:
- Unreasonable Delays: Taking excessive time to process a claim without a valid reason, causing financial hardship for beneficiaries.
- Wrongful Denials: Denying a legitimate claim based on misinterpretation of policy terms or minor technicalities.
- Improper Investigations: Neglecting to conduct a thorough and fair investigation, including interpreting facts and medical histories in a way that justifies denial.
- Misrepresentation of Policy Terms: Providing false or misleading information about coverage or exclusions to justify a denial or underpayment.
- Use of Invalid Policy Lapses: Claiming the policy has lapsed due to nonpayment when payments were made on time or the lapse was caused by the insurer’s error.
- Unjustified Requests for Additional Documentation: Repeatedly requesting unnecessary paperwork to delay payment of the claim.
When insurance companies engage in these tactics, they are putting their profits above the rights of beneficiaries.
Common Reasons Insurers Cite for Denying Life Insurance Claims
While some claim denials are legitimate, many are based on bad faith practices. Common reasons insurers use to deny claims include:
- Allegations of policyholder misrepresentation or fraud during the application process.
- Exclusions for certain causes of death, such as suicide or accidents.
- Disputes over beneficiary designations.
- Claims that the policy was not in force at the time of death.
Insurers may use complicated policy language and legal loopholes to make it seem like a claim isn’t valid—even when it is.
How Gold, Khourey & Turak Can Help
If you suspect a life insurance company is acting in bad faith, GKT can help you fight for the benefits you are entitled to. Our experienced attorneys will:
- Review Your Policy: We’ll examine the fine print of your policy and the details of your claim to identify bad faith practices.
- Investigate the Insurance Company’s Actions: Our team gathers evidence to prove that the insurer failed to meet its obligations.
- Negotiate on Your Behalf: We handle all communications with the insurance company to ensure they are held accountable.
- Pursue Legal Action: If necessary, we are prepared to take your case to court to fight for the compensation you deserve.
With our experience and resources, we can help you navigate the complexities of life insurance claims and hold insurers accountable for their actions.
Why Choose Gold, Khourey & Turak?
For over 45 years, Gold, Khourey & Turak has been a trusted law firm for individuals and families dealing with bad faith insurance practices. Our team is dedicated to providing:
- Honest Advice: We give you a clear understanding of your legal options.
- Aggressive Advocacy: We fight tirelessly to protect your rights and secure the compensation you deserve.
- Personalized Service: We take the time to understand your unique situation and provide tailored legal solutions.
Our goal is to hold insurers accountable and ensure that you receive the benefits you’re owed.
Contact GKT Today
If you believe your life insurance company is acting in bad faith, don’t wait. Contact Gold, Khourey & Turak today to protect your rights and get the benefits you’re owed.
Call us at (304) 845-9750, chat with us live online, or fill out our online form. Our attorneys are available 24/7 to provide honest, reliable legal advice.
Need help? Get help. Get GKT.
Michelle Marinacci joined Gold, Khourey & Turak in 2018 bringing with her 20 years of litigation experience, including prosecuting and defending civil litigation cases and assisting in case decisions at the West Virginia Supreme Court of Appeals.
