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

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

Archive