by Guest » Tue Feb 16, 2010 06:45 pm
Is it possible for a life insurance company to ask for their money back after a year of checking hospital medical records? Then later find out that there was a pre-existing condition that would have allowed them not to pay on the policy. I am not talking about fraud but basically an existing condition that no one knew about and then was discovered. Does the insurance company have the right to get back the money even though they have investigated for a whole year before making the death payment?
Posted: Tue Feb 16, 2010 09:20 pm Post Subject:
Ummm, unless there is some law that states otherwise in your state, no.
Life insurance companies have the right to require a certain degree of information prior to paying the claim, but afterwards it should be a done deal. I don't understand why the insurance company would have even bothered investigating after paying the claim.
If they investigated prior to paying the claim and found something that would have changed their original underwriting decision they have a few options. Pay a lesser claim, the amount that would have been purchased with the premiums paid if they had known the information that was kept from them. Or, return the premium (at the very least this must happen if they are going to refuse to pay a claim).
Posted: Wed Feb 17, 2010 12:33 pm Post Subject: Insurance claim
It is surprising that the insurance company did not have information about the pre-existing conditions in spite of a year-long investigation. But they might just take some legal steps for not revealing the right information.
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