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Disability Claim Denial

Many policyholders have heard the same excuses as to why their claims have been denied. Excuses have ranged from failing to receive documentation on time, failing to receive medical reports; ailment is not a covered disability and more. Disability insurance companies have historically refused benefits to policyholders Or, the insurance company may allege that the pain is not severe enough to prevent the employee from working. Recent studies prove them wrong, yet benefits are still often initially denied and require an attorney’s assistance to recover them.

Professional disability insurers have been found liable for denying coverage on claims brought by disabled professionals. In the 1970s and 1980s some of these insurers grossly oversold disability policies to younger professionals, anticipating that few claims would mount from this low risk population. However as the policyholders aged and professionals became disabled, the claims mounted steadily. Some of the companies decided to cope by unfairly denying claims to cut their losses.

Bad faith claims are basically a breach of the insurance contract, when insurers use non-legitimate reasons to deny claims. Insurers have a duty to the insured to examine claims in good faith and use fair dealing when evaluating claims. To act in bad faith requires the insurer to engage in unfair dealing not just a mistake.

Most lawsuits involve action against an insured's own insurance company, and arise in situations where the insurance company unfairly and without proper cause, fails to compensate the insured for a loss covered by the policy, or unreasonably delays making payments due under the policy.

If your insurance company has denied your claim, please fill out the form at the right for a free case evaluation by a qualified disability claim denial attorney.