Life Insurance Bad Faith: Policyholders Wrongly Rejected Over Pre-Existing Conditions

Life insurance companies frequently deny life insurance benefits by claiming that policyholders failed to inform them of pre-existing conditions on their life insurance applications. However, according to Bob Scott, a California attorney and partner with the Advocate Law Group, policyholders should not accept an insurance company’s rejection of benefits for pre-existing conditions without contacting a bad faith insurance lawyer first.

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Life Insurance Bad Faith Practices: Updating Policies Can Expose You To Another Contestable Period

Life insurance policies are subject to a two year contestable period in which insurers can deny claims for unreported pre-existing conditions, questions about whether a death was accidental, questions about possible fraudulent activity and others. While bad faith life insurance lawyers say that there is nothing wrong with that practice, there are instances in which insurers will “update” or “add to” existing policies – exposing insureds to another two year contestable period.

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Conseco Life Insurance Settles Allegations of Bad Faith

Conseco Life Insurance Company has agreed to an $11 million settlement with 37 states over allegations of bad faith insurance practices – specifically involving its Lifetrend life insurance policies. The settlement came after a multistate insurance investigation based on consumer complaints over increased policy costs. Bad faith insurance lawyers say that these types of practices are why Conseco was voted one of the top ten worst insurance companies in America.

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