An exposé in the Los Angeles Times documented the struggles and tribulations individuals had to endure due to the denial or rescission of life insurance benefits by billion dollar companies like Metropolitan Life (MetLife), American General Life Insurance Company (AIG), and AXA Equitable Life Insurance Company (Equitable). In a growing number of cases, life insurance companies are disputing claims based on assertions of a “material misrepresentation” made in the insurance application. Here in California, the window for making such an assertion is limited by law to two years following the application. While this shortens the potentially limitless contestibility period, it also allows insurance companies to easily focus on a subset of claims to unfairly scrutinize – often discovering and asserting mistakes that were not the fault of the insured.
We have represented claimants in these situations against big insurance companies like Prudential, Liberty Mutual, Unum, and State Farm – both in ERISA and “bad faith” litigation. We have thus seen many of the heavy handed ways in which life insurance companies unreasonably deny benefits.