Can You Sue a Life Insurance Company?

Dealing with a denied or delayed life insurance claim can be emotionally and financially draining, leaving many wondering: Can you sue a life insurance company? This blog aims to shed light on your rights and potential steps you can take when facing such adversities with your life insurance provider.

This article explores the circumstances under which you can legally contest these actions and the implications of doing so. Additionally, engaging with a seasoned life insurance attorney, like those at Boonswang Law, can be a game-changer in such scenarios. Our life insurance lawyers have the knowledge to handle complex life insurance cases and the skills to help get you the financial compensation you deserve.

Contact the life insurance attorneys at Boonswang Law to help sue your life insurance company.

When You Can File a Lawsuit Against a Life Insurance Company

Policyholders often find themselves in challenging positions when their claims are denied or delayed without a just cause. When considering filing a lawsuit against a life insurance company, it’s crucial to understand the situations warranting legal action.

This section delves into the key scenarios, such as life insurance claim denials, delays, instances of negligence, and acts of bad faith, where you might have substantial grounds to file a lawsuit with a life insurance lawyer.

Claim Denials

Claim denials often stem from the insurer’s interpretation that the policyholder didn’t adhere to policy terms or there was misrepresentation. These denials can be disputed if you believe there’s been a mistake or unjust handling of your policy terms.

You’ll need a clear demonstration of how the claim denial contradicts the policy’s terms or the law, in addition to proof that you adhered to the policy and there wasn’t misrepresentation. Legal guidance is invaluable here, providing clarity on the merits of your life insurance case and the feasibility of overturning the denial through litigation.

Claim Delays

Delays in claim processing can place beneficiaries in difficult positions, often leading to financial strain. Such delays, especially when unexplained or unjustified, might be indicative of the insurer’s bad faith, giving you grounds for legal action.

Legally confronting these delays requires detailed documentation of all interactions with the insurer and establishing a timeline that illustrates the extent of the delay. Legal intervention might expedite the resolution and uncover a pattern of bad faith, strengthening your position in seeking a fair settlement or pursuing litigation.

Negligence

When insurers don’t maintain the expected standard of care in managing your policy, their negligence can lead to significant financial detriment. This negligence might manifest as inadequate policy management, errors in processing, or failure to update policyholders on crucial information, all of which can justify legal action.

Pursuing a life insurance lawsuit for negligence involves proving the insurer’s failure in their duty and the consequent financial harm. This legal route can address the oversight or errors that led to your claim’s denial or underpayment, potentially leading to compensation for the mistakes and ensuring accountability from the insurance provider.

Bad Faith

Insurers must treat their policyholders fairly and fulfill their promises. However, instances of bad faith, like unjustified claim denials or failure to investigate a claim properly, breach this trust. Suing for bad faith could lead to damages that extend beyond the policy’s value, encompassing punitive damages designed to penalize the insurer for their misconduct.

Taking action against bad faith practices demands a full understanding of your rights and the insurer’s obligations. A successful lawsuit can affirm the insurer’s duty to deal fairly, encouraging them to uphold higher standards when processing claims and interacting with policyholders.

Types of Legal Actions You Can Take

You can consider several legal avenues against a life insurance company, such as filing a breach of contract claim, a bad faith insurance lawsuit, or a negligence claim. The choice depends on the specifics of your case, such as the reasons behind the claim denial or delay and the state laws governing insurance contracts.

For example, breach of contract claims are common when you believe the insurer has not honored the agreement, particularly if your claim aligns with the policy’s terms but was still denied. While bad faith lawsuits arise when insurers fail to act with honesty or integrity, such as denying claims without a valid reason, negligence claims may focus on careless errors that led to your loss.

What to Do Before Deciding to Sue a Life Insurance Company

Initiating legal proceedings requires preparation. It’s fundamental to ensure you’ve fully engaged with the insurer’s process, from appealing denials to providing all requested information. This diligence strengthens your potential legal case and ensures that you’ve met all contractual obligations, minimizing the risk of procedural dismissals.

Consulting with a life insurance attorney before proceeding can give you insights into the viability of your case and advise you on the necessary preparatory steps. An attorney can also help interpret the insurer’s responses and guide you in compiling a detailed evidence package, which is critical for substantiating your claim in court.

Why a Company Would Deny or Delay Your Claim

Life insurance companies deny claims usually for reasons such as administrative errors or strategic avoidance of payouts. Understanding these reasons can be pivotal, as they inform your response strategy, whether that’s providing additional information, correcting misunderstandings, or challenging baseless denials.

Delays can be particularly frustrating and might be used by a life insurance agent to test your resolve or push you toward a less favorable settlement. Being aware of these tactics from insurance providers empowers you to respond proactively, whether by pressing for timely action or preparing for legal recourse.

What to Expect if You Decide to Sue a Life Insurance Company

The process of deciding to sue a life insurance company involves understanding insurance laws and getting legal representation to present a compelling case that demonstrates the insurer’s failure to uphold their obligations.

It’s a path that requires patience, as litigation can extend over long periods. And it demands a steadfast commitment to achieving justice and the rightful benefits under life insurance policies.

What You Could Recover

You can recover compensatory damages in a lawsuit against a life insurance company, which primarily includes the policy’s original payout that was denied or delayed. These economic damages are intended to cover the financial loss you experienced due to the insurer’s actions, essentially putting you in the position you would have been in had the claim been paid timely.

You may also be entitled to accrued interest on the claim amount or reimbursement of attorney’s fees or court costs. In instances of egregious insurer conduct, punitive damages can be awarded to penalize the insurer and deter similar future conduct. The goal is to ensure full financial restitution and, where applicable, additional compensation for the insurer’s wrongful behavior.

Tips for Improving Your Case Against a Life Insurance Company

Enhancing your case against a life insurance company involves diligent preparation and strategic documentation. Start by maintaining a detailed record of all communications with the insurance company, including calls, emails, and letters. Ensure that you follow all the policy’s stipulations, meet every deadline, and comply with procedural requirements, as any deviation can be used against you.

Additionally, compile a portfolio of evidence supporting your claim. This can include the original life insurance policy documents, proof of premium payments, medical records, correspondence related to the claim, and any other relevant documentation. Strong evidence is key to countering the insurer’s reasons for denying your claim.

Lastly, seeking and following legal advice from a seasoned life insurance attorney can provide invaluable insights and guidance, increasing your chances of a favorable outcome.

How a Life Insurance Attorney Helps Your Claim

The skilled life insurance attorneys at Boonswang Law play a crucial role in handling insurance claims and guiding beneficiaries through the legal process to get the justice and financial compensation they are entitled to. Our life insurance lawyers have a remarkable track record, having recovered over $200 million in life insurance benefits for clients. This showcases our commitment to challenging wrongful denials and delays by insurance companies.

Led by Chad G. Boonswang, Esquire, the life insurance attorneys at Boonswang Law have garnered national recognition for their diligent advocacy and profound understanding of life insurance law. Their expertise makes them a formidable ally in securing your rightful benefits.

Contact Boonswang Law today and let our life insurance lawyers handle your suit against an insurance company.

Written By: Chad Boonswang
Chad G. Boonswang, Esquire is a litigation lawyer based in Philadelphia, PA. Selected as an ASLA 2014, 2015, 2016, 2017 and 2018 Top 100 Litigation Lawyer, Mr. Boonswang plays to win. As a lawyer, athlete, and scholar, he has always put in the energy, time, and commitment to be the best. After working for several prominent law firms in Philadelphia, including Montgomery McCracken Walker & Rhoads LLP, he founded his own practice in 2002.  Since then Chad has recovered tens of millions of dollars on behalf of his clients from life insurance claims and catastrophic injury cases.  Year after year, he has earned a 10.00 Superb rating on Avvo.

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