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

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

Archive