DGAA bLAWg

Avoiding Life Insurance Loopholes

Web Admin - Tuesday, November 25, 2014

life insurance loopholes, Illinois life insurance lawyerThe insurance industry is known for having incredibly complex contracts, and life insurance is no exception to this rule. As you might expect, the reason for this is money. According to statistics from the Insurance Information Institute, life insurance is a multi-billion dollar industry, and the companies want to keep it that way. 

One of the ways that life insurance companies do this is by fighting against paying valid claims. Money they do not have to pay out is money that they can ultimately keep for themselves, and even just delaying the payments can be profitable for them. Life insurance companies have two main tools for insurance claim disputes, policy cancellations and policy exclusions.

Policy Cancellation

A policy cancellation is exactly what it sounds like. The insurance company cancels a claimant's policy in order to avoid paying out a claim. This is a particular problem during the first two years of the policy's life, which is known as the contestability period. During this period, the insurance company may examine the policy looking for misrepresentations or omissions, and then cancel the policy if they find any. They even have the option of doing this after a person has already made a claim, and they are allowed to cancel regardless of whether the omitted information has anything to do with the actual cause of death.

A similar issue, but one that can last beyond the contestability period, is the material misrepresentation clause. This clause allows the insurer to cancel the policy at any time if they discover a lie or omission that would have caused them to not issue the policy in the first place. However, even people with perfectly accurate applications are not safe from having their claims contested.

Exclusions

In cases where the person's application cannot be contested, insurance companies may still attempt to avoid paying out for claims based on policy exclusions. These exclusions are specific events or actions that the insurance company has excepted from the policy. There are a variety of different policy exclusions that insurers may use, and they vary from policy to policy, but they may include:

- Dangerous activities like skydiving;
- Suicide;
- Alcohol and drug use; and
- Illegal activities.

The exact limits of these exclusions can depend on the precise policy language. For instance, some policies’ exclusions for alcohol and drug use exclude only illegal substances, while others exclude legal ones too. This can be especially complicated because some policies require the substance to be the cause of the death, while others only need the substance to be in the person's system at the time of death.

Life insurance contracts are complicated legal documents, and the insurance company is going to have a lawyer on their side. If you want to even the odds, contact a Palatine life insurance attorney today. Our firm assists people in insurance disputes all over the northwest suburbs, including in towns like Inverness, Deer Park, Barrington, Arlington Heights, Schaumburg, Des Plaines, Rolling Meadows, Crystal Lake, and Buffalo Grove.

Ken ApicellaAbout the Author: Attorney Ken Apicella is a founding partner of DGAA focusing in the areas of personal injury, employment, insurance coverage disputes, and civil litigation. Ken earned his J.D. from DePaul University College of Law in 1999. He has been named a SuperLawyers Rising Star and a Forty Illinois Attorneys Under Forty to Watch. Ken has written and lectured for the Illinois Institute for Continuing Legal Education and regularly serves as a moderator at Northwest Suburban Bar Association's Continuing Legal Education seminars.


Recent Posts


Tags

fatal car accidents Des Plaines drug crimes lawyer insurance dispute attorney Deer Park medical malpractice attorney paid sick leave healthcare estate planning denied insurance claims elder law Rolling Meadows litigation lawyer Illinois car accident attorney real estate contract employment attorney Des Plaines accident attorney Deer Park personal injury lawyer Long Grove estate planning attorneys Self-Directed IRA Accounts denied insurance claim Forcible Entry Illinois employment law attorney Barrington estate planning lawyer Illinois medical malpractice claim Chicago insurance law firm Arlington Heights pedestrian accidents uninsured motorist trauma after an accident civil litigation attorney hands free device bad faith insurance claims digital evidence no contest clauses Deer Park motorcycle accident lawyer driving Rolling Meadows DUI lawyer Rolling Meadows accident lawyer blended families Barrington Traffic Lawyer Arlington Heights TBI attorney swimming pools speeding Barrington employment law firm Illinois traffic attorney estate planning trusts overtime pay Schaumburg Buffalo Grove law firm Inverness estate planning lawyer Illinois compensatory time Crystal Lake insurance lawyer business litigation employment law Illinois Transfer on Death Instrument Deer Park real estate law firm spinal cord injuries Illinois collections attorney estate planning, death tax, succession plans, business estate plans, Barrington estate planning lawyers medication errors medical malpractice Palatine traffic lawyer drunk driving Barrington boating accident attorney Crystal Lake business law attorneys digital assets, digital fiduciary, estate planning, digital content, Long Grove estate planning lawyers Illinois pet lawyer Schaumburg employment law attorneys Colin Gilbert Illinois medical malpractice lawyers Illinois defective products attorney traffic laws Home Sale Contingencies Des Plaines real estate attorney Chicago lawyer employment contract living trust vs will field sobriety test Illinois insurance claims lawyers premises liability motorcycle accident Palatine corporate attorney Arlington Heights tax lawyer crossover accidents Federal Food Drug and Cosmetic Act subcontractor Palatine employment attorney Illinois employment law firm Palatine drug lawyer probate lawyer employment contract, employment law, employment at-will, Deer Park employment law attorneys, contract, Des Plaines texting while driving Inverness insurance attorney financial advisors Illinois employment lawyer federal crimes Rolling Meadows traffic attorney Thanksgiving dealing with problem employees Illinois business lawyer Barrington attorney Landlord Tenant Ordinance Palatine injury attorney Rolling Meadows personal injury lawyer underage DUI slip and fall accidents drug crimes lawyer advance healthcare directive BUI Crystal Lake medical malpractice lawyer Barrington business law firm Chicago estate planning Jay Andrew Deer Park workers compensation lawyer Illinois medical malpractice attorney liability claims traffic crimes DGAA Kenilworth estate planning attorney Schaumburg estate attorney Deer Park traffic accident attorney Chicago car accident lawyer landlord Barrington employment attorney commercial leases Illinois pedestrian accident attorney Illinois Human Rights Act trucking accidents comp time Illinois insurance attorney Chicago estate planning lawyer personal injury claims caregiver rent to own real estate contracts real estate lawyer Schaumburg criminal law attorney CAM wills employee discrimination drug crime Illinois insurance dispute lawyers Arlington Heights employment law attorneys Chicago biking tips PTSD Illinois personal injury attorney civil litigation Illinois Wage Payment and Collection Act Schaumburg employment attorney car accidents senior citizens defective products lawyer Crystal Lake medical malpractice attorneys income distribution deducation auto accidents creditors Schaumburg civil litigation attorney Rolling Meadows tax attorney Inverness real estate lawyer Illinois traffic ticket lawyer Crystal Lake accident attorney Illinois workers compensation attorney Rolling Meadows drug defense attorney rest breaks Arlington Heights employment attorney liens Illinois jet ski accident lawyer Illinois speeding lawyer South Barrington real estate attorney Kenilworth estate planning attorneys Crystal Lake employment law attorney car accident life insurance lawyer work unions medical malpractice claims trust payments probate claims Chicago insurance claim attorneys privacy Barrington estate planning attorney hit and run accident Deer Park accident attorney Barrington workers compensation attorney Des Plaines drug lawyer Chicago trucking accident attorney digital assets Rolling Meadows personal injury lawyers preventing accidents Illinois wrongful termination lawyer Crystal Lake will lawyer Illinois personal injury lawyer Buffalo Grove employment lawyer Illinois insurance disputes Schaumburg insurance lawyers Long Grove wills and trusts attorneys traffic violations pet bites owner responsibility Crystal Lake tax lawyer traffic violations defense estate planning lawyer Riverwoods estate planning lawyer real estate attorneys Rolling Meadows corporate lawyer defective products Kenilworth estate planning lawyer Des Plaines injury law firm Illinois Sales Representative Act Home Remodeling Repair Act Des Plaines claims law firm Chicago traffic lawyer Rolling Meadows insurance lawyer Illinois real estate insurance claims estate planning attorney Deer Park criminal attorney Crystal Lake personal injury lawyer Illinois attorney Des Plaines motorcycle accident attorney pedestrian injuries, pedestrian fatality estate attorney estate plan trusts insurance claim denial Illinois trucking safety overtime violations IRELA digital information Schaumburg criminal attorney whistleblower protections product liability consent to a search caretaker rights power of attorney for healthcare minimum wage agent distracted driving accident victims anesthesia errors Crystal Lake traffic lawyer Rolling Meadows criminal lawyer surgical mistakes Buffalo Grove traffic attorney Palatine employment lawyer landlord tenant law real estate closing startup company in terrorem provision mass shooting cell phone tower data independent contractor dog bites Illinois workers compensation lawyer natural gas job lawyers bicycle dooring accidents Whistleblower Claims Illinois insurance lawyer Arlington Heights Attorney traumatic brain injuries Transfer on Death Instrument Arlington Heights wills and trusts attorney home inspection lawyer Des Plaines personal injury lawyers Rolling Meadows traffic law firm Illinois construction accident attorney Palatine law firm Illinois lawyer Palatine employment law lawyer FSLA severance agreements real estate Illinois injury lawyer life insurance policy Crystal Lake employment lawyer Rolling Meadows personal injury attorney living trust benefits Barrington injury attorney back injuries Barrington criminal defense lawyer Arlington Heights real estate lawyer condo Barrington criminal lawyer dynasty trusts privacy laws Fourth of July Chicago employment attorney Des Plaines DUI attorney contracts capital gains tax power of attorney IRA trust transfer Illinois estate planning Arlington Heights Traffic Lawyer slip and fall Schaumburg personal injury lawyer fault based insurance traffic deaths construction accidents, personal injury, wrongful death, Arlington Heights personal injury attorneys, workers' compensation Arlington Heights injury attorney federal regulations for LLCs Palatine punch death car crashes Crystal Lake civil litigation lawyer Palatine traffic accidents employee rights Chicago will attorney, social media platforms, Illinois estate planning lawyer, Crystal Lake car accident lawyer Palatine workers compensation lawyer Palatine insurance lawyer food poisoning Rolling Meadows estate planning attorney Illinois insurance claim dispute lawyer Illinois medical malpractice case Long Grove real estate attorney Policy Cancellation medical research Illinois insurance claim attorney South Barrington real estate lawyer Exclusions Illinois mortgages fiduciary rule insurance disputes Barrington Illinois estate planning lawyer suspended license construction accidents Illinois job attorney Palatine trusts lawyer estate planning, digital assets, Revised Uniform Fiduciary Access to Digital Assets Act, Illinois digital assets, Illinois estate planning, Rolling Meadows real estate attorney changes to mortgage law natural gas explosion marijuana crimes attorney attorney fees Inverness injury lawyer commercial leasing drugs Attorney Ken Apicella pain and suffering Schaumburg estate planning attorney Arlington Heights estate planning attorney unpaid overtime rumble strips new real estate form Palatine elder law attorney probate claims process Long Grove real estate lawyer cell phone Rolling Meadows Attorney Palatine construction attorney cell phone accidents Arlington Heights accident attorney Do Not Resuscitate BAC Rolling Meadows car accident lawyers digital media accounts, estate planning, Arlington Heights estate planning attorney, workers compensation benefits Schaumburg real estate lawyer construction contracts Barrington medical malpractice lawyers Chicago will attorney Chicago corporate attorney meal breaks Chicago attorney insurance denials blood alcohol content Rolling Meadows criminal attorney insurance dispute, insurance dispute lawyers, insurance claim denial, insurance claim delays, Rolling Meadows insurance dispute attorneys Crystal Lake criminal defense attorney Schaumburg injury lawyer taxes Schaumburg personal injury lawyers Des Plaines medical malpractice attorney Illinois employment law attorneys BAIID Inverness corporate attorney pedestrian-automobile accident Illinois wills and trusts probate process pet law Illinois home inspection Inverness personal injury attorney Arlington Heights criminal lawyer insurance claim delay Illinois criminal defense attorney Illinois elder law attorney investment property Rolling Meadows boating crash lawyer Barrington personal injury lawyer Crystal Lake pet attorney Rolling Meadows employment attorney gift taxes Schaumburg elder law lawyer Buffalo Grove traffic lawyers insurance adjusters personal injury law firm insurance claim Illinois employment laws jet ski accidents Schaumburg construction accident lawyer Illinois driving without license commercial real estate boating DUI insurance claim dispute drunk driving statistics Liquor Control Act Mount Prospect elder law attorney sexual images Crystal Lake bike accident lawyer preventable medical errors Long Grove estate planning attorney clemency Rolling Meadows probate lawyer Des Plaines Traffic Lawyer Arlington Heights traffic attorney Buffalo Grove car accident lawyer homestead rights IRS Illinois workplace discrimination attorney license suspension Illinois real estate lawyer Arlington Heights car accident lawyer medical marijuana Barrington employment law attorney DUI attorney insurance dispute Rolling Meadows revenge porn installment contracts Illinois boating accident lawyer Palatine business attorney drug possession workers compensation Illinois Workers’ Compensation Commission real estate leasing Buffalo Grove criminal defense lawyer condo association Illinois registered agent low-ball insurance settlement DNR Palatine Attorney social media after death Arlington Heights personal injury attorney Employment Discrimination Law Illinois workplace lawyer Inverness civil lawyer fiduciary rule delay Schaumburg drug defense lawyer insurance attorney disability benefits tax attorney modern family estate planning Barrington civil litigation attorney life insurance holiday statistics bike accident Illinois traffic accident lawyer Deer Park traffic lawyer Schaumburg wrongful death attorney Illinois personal injury Des Plaines criminal attorney internet personal injury accidents car crash traumatic brain injury Legal Info head on collisions forming a corporation in Illinois murder defense Buffalo Grove real estate attorney operating agreements Rolling Meadows medical malpractice lawyers Crystal Lake pedestrian accident lawyer life insurance claims Illinois red light cameras Inverness probate lawyer Mt Prospect Attorney Inverness DUI lawyer civil rights violation Super Mario ACA Illinois employment attorneys appealing an insurance claim pizza emoji right to work car crash injuries health insurance dispute Rolling Meadows insurance dispute lawyers, insurance dispute marijuana Illinois Probate Act of 1975 Illinois wills and trusts attorneys manufacturing Palatine civil attorney insurance agents Arlington Heights wills and trusts lawyers unauthorized overtime license Illinois small business personal injury gift tax exemption, estate planning, estate planning strategies, Illinois estate planning, South Barrington estate planning attorneys Food and Drug Administration's Food Safety Modernization Act Arlington Heights medical malpractice lawyer estate planning for college students special needs trust Mount Prospect wills and trusts lawyers insurance denial appeals Buffalo Grove injury lawyer medical malpractice compensation trucking accident lawyers controlled substance underfunded trust Arlington Heights personal injury lawyer foreclosed rental property texting and driving DMV Illinois LLC creation loopholes Crystal Lake medical malpractice law firm Illinois tax attorney criminal defense sexual harassment personal injury claim truck collisions Long Grove estate planning hiring employees Schaumburg corporate attorney Retaliatory Discharge institutional trustee employee misclassification insurance claim dispute attorney DUI defense wrongful termination Chicago employment lawyer jet ski first degree murder Inverness real estate attorney Crystal Lake car accident attorney unfunded trust irrevocable trust real estate attorney traffic accidents trench injuries Illinois trusts attorney workers comp Arlington Heights trucking lawyer traffic tickets Schaumburg probate attorney employment law, meal breaks, rest breaks, hotel employees, Des Plaines employment law attorneys Illinois estate planning law firm accidental death benefits Joliet general practice lawyers license reinstatement Des Plaines collections attorney Illinois estate planning attorney college kids wage theft Des Plaines real estate lawyer Barrington personal injury attorney vacation home fines problem employees living trust Barrington drug crime attorney workplace sexual harassment Buffalo Grove personal injury attorney drug crimes Inverness elder law lawyer Palatine civil litigation lawyer Illinois insurance claim dispute lawyers Colin H. Gilbert Palatine probate lawyer boating under the influence Illinois bicycle safety ObamaCare pay when paid contract Fair Labor Standards Act guardianship attorney Detainer Actions POA employees Arlington Heights wills and trusts attorneys Illinois corporate lawyer Schaumburg personal injury attorney rollover car crashes distracted driving accidents Palatine estate planning lawyer products liability Schaumburg car accident attorney Illinois employment law traffic offenses denial of life insurance DUI Des Plaines pet law attorney icy parking lots GM ignition switches sole proprietorship expungement Arlington Heights car crash attorneys golf accidents car accident lawyer llinois Real Estate Lawyers Association Illinois law liability Inverness traffic law firm Palatine criminal defense lawyer Illinois civil litigation lawyer IRA benefits pedestrian accident Des Plaines personal injury attorney Crystal Lake traffic attorney mortgage spinal cord injury foreclosure Rolling Meadows employment law attorney Mount Prospect real estate lawyer insurance disputes, Illinois insurance disputes, Illinois insurance dispute attorneys, denied insurance claims, Arlington Heights insurance dispute attorneys eluding a police officer School Visitation Rights Act Crystal Lake law firm employment law, Illinois employment laws criminal record Rolling Meadows insurance attorney car accident lawyers dram shop law living wills deadly crashes probate Palatine real estate lawyer Arlington Heights insurance attorney car collision deed transfer automated cars Illinois personal injury lawyers corporate law healthcare claims wrongful death Schaumburg estate planning lawyer LLCs Palatine personal injury lawyer Des Plaines personal injury lawyer Illinois will lawyer insurance agent negligence Inverness accident lawyer TBI child safety breathalyzer test boating accidents Illinois traffic laws Barrington real estate lawyer small business Schaumburg medical malpractice lawyer reckless homicide Deer Park DUI lawyer Buffalo Grove corporate attorney Crystal Lake employment attorney Buffalo Grove personal injury lawyer underinsured motorist bicycle accidents estate tax involuntary manslaughter motorcycle accident lawyer vacation home Buffalo Grove insurance claim dispute lawyers Illinois motorcycle accident lawyer Illinois DUI attorney Illinois business law atorneys Deer Park employment law attorney personal injury attorney murder loss of consortium medical malpractice, missed diagnosis, delayed diagnosis, medical mistake, Deer Creek medical malpractice lawyers trustee Illinois employee rights attorney. wills and trusts Affordable Care Act pedestrian accidents Arlington Heights lawyer probate fees DUI penalities Barrington litigation attorney Illinois living will Illinois traffic attorneys Arlington Heights wills and trusts lawyer Crystal Lake personal injury attorney Buffalo Grove medical malpractice lawyers breach of contract Class A misdemeanor license revocation Des Plaines insurance attorney Palatine corporate law attorneys Rolling Meadows Traffic Lawyer residential real estate unpaid assessment criminal law personal injury, auto accident injuries, delayed injuries, serious injuries, Des Plaines personal injury attorneys Illinois Smoke Detector Act Rolling Meadows insurance dispute lawyers wrongful termination, employment law, whistleblower protections, Illinois employment laws, discrimination in the workplace Des Plaines civil attorney insurance negligence Crystal lake insurance dispute attorney elder abuse personal injury lawyer murder charges Buffalo Grove probate lawyer Rolling Meadows marijuana attorney Rolling Meadows business lawyer Crystal Lake injury attorney real estate zoning FMLA nursing home negligence Des Plaines tax law firm Illinois rollover accident lawyers ken apicella rollover accidents Rolling Meadows employment law attorneys Family Medical Leave Act pregnant women filing a medical malpractice claim comparative negligence employment lawyer Illinois probate lawyer insurance claim denials criminal Crystal Lake estate planning lawyer Schaumburg traffic lawyer brain injury Schaumburg Attorney

Archive