Term Life Insurance Articles
When To File A Complaint About A Term Life Insurance Claim
2010-11-28
Nobody likes filing complaints, but sometimes it's necessary, particularly if the alternative is missing out on benefits that you're entitled to collect. This is particularly true where term life insurance is concerned. While a term life insurance plan is generally a very safe investment, sometimes an insurance company will deny a claim or take far too long when deciding whether or not to pay out. When this is the case, it's time to file a complaint. State insurance commissioners set special guidelines that term life insurance companies are required to comply with, and if a certain insurance provider isn't doing what they're legally required to do, a complaint to the state insurance commissioner is certainly in order.
One of the major reasons that a beneficiary would have to file a complaint about a term life insurance plan is a payout denial without adequate explanation. Insurance companies are required by law to present a clear and reasonable cause for a payout denial. The reason for the denial must also conform to the state's standards for life insurance. Contact your state insurance commissioner for more information and to find out how whether the reason that your insurance company gave for the denial fits the bill. If you believe that the conditions explained by the insurance provider aren't accurate or if they won't give you a clear reason for the denial of the term life insurance plan, then it's time to consider filing a complaint.
Occasionally, term life insurance providers will also take too long to decide whether or not to pay out on a claim. More often than not, this is because they're trying to verify the circumstances of a death or find a reason why a payout isn't legally necessary. Sometimes, the insurance company is simply stalling. In either case, most states have limitations that prevent this practice. It's standard for states to require a life insurance company to accept or deny a claim within 30 days of the policy holder's death as long as a death certificate is submitted by the policy holder's beneficiaries. Again, check with your state insurance commission to find out whether this is the case and to get more information about filing complaints.
Most policy holders will never have to worry about filing complaints against their insurance companies. However, laws are in place for a reason, and it's always helpful to know that the option exists. If you're concerned about the actions of a term life insurance company, contact your insurance commission for information about what steps you can take to ensure fast and appropriate payment.
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Nobody likes filing complaints, but sometimes it's necessary, particularly if the alternative is missing out on benefits that you're entitled to collect. This is particularly true where term life insurance is concerned. While a term life insurance plan is generally a very safe investment, sometimes an insurance company will deny a claim or take far too long when deciding whether or not to pay out. When this is the case, it's time to file a complaint. State insurance commissioners set special guidelines that term life insurance companies are required to comply with, and if a certain insurance provider isn't doing what they're legally required to do, a complaint to the state insurance commissioner is certainly in order.
One of the major reasons that a beneficiary would have to file a complaint about a term life insurance plan is a payout denial without adequate explanation. Insurance companies are required by law to present a clear and reasonable cause for a payout denial. The reason for the denial must also conform to the state's standards for life insurance. Contact your state insurance commissioner for more information and to find out how whether the reason that your insurance company gave for the denial fits the bill. If you believe that the conditions explained by the insurance provider aren't accurate or if they won't give you a clear reason for the denial of the term life insurance plan, then it's time to consider filing a complaint.
Occasionally, term life insurance providers will also take too long to decide whether or not to pay out on a claim. More often than not, this is because they're trying to verify the circumstances of a death or find a reason why a payout isn't legally necessary. Sometimes, the insurance company is simply stalling. In either case, most states have limitations that prevent this practice. It's standard for states to require a life insurance company to accept or deny a claim within 30 days of the policy holder's death as long as a death certificate is submitted by the policy holder's beneficiaries. Again, check with your state insurance commission to find out whether this is the case and to get more information about filing complaints.
Most policy holders will never have to worry about filing complaints against their insurance companies. However, laws are in place for a reason, and it's always helpful to know that the option exists. If you're concerned about the actions of a term life insurance company, contact your insurance commission for information about what steps you can take to ensure fast and appropriate payment.
