There is a probationary period from the date that the policy is sold and accepted. If the applicant lied on the insurance form and dies during that period, the insurance company investigates (they always do, to my knowledge, when there is a death), and finds the lie, the company is obligated to pay ONLY the premiums paid to the date of death. If the insured dies as a smoker AFTER the probationary period, my experience in reading TONS of policies is that the company has to pay the full benefit.Smoking vs. Non-smokingI am not an expert on all companies' life policies, so you might ask your agent or company about your policy specifically. However, what typically happens is that if you have had a policy with the rate of a non-smoker for more than two years and need to file a claim, and the insurance company discovers that you are and have been a smoker, the company may take part of the death benefit to pay the difference in back premium between a smoker and non-smoker. So, in essence, the death benefit will be smaller to pay the back smoker premiums. The reason two years makes a difference is because the incontestability clause may play a part in how the death benefit is paid or not-paid. In this case, it may not play a role. I would ask either a company representative anonymously or maybe even your agent.
More input from FAQ Farmers:
I assume that you are talking about a life insurance policy or perhaps even a health insurance policy of some kind. The answer is the same either way. As all insurance companies are legal contracts the agreements are based on the conditions at the time the contracts were signed. The insurance company will not penalize anyone who starts smoking after the policy was issued. They will even reduce your rates and give you non-smoker rates if you quit smoking and can prove that you stay quit for a period of one year. The insurance company can provide testing to verify such. Both policies are the same as far as rates. Your price will not increase if you start smoking either.
Possibly. Depending on the conditions of your policy, the claim may be denied or only paid a rediculously small fraction such as 8-10% of the premium value. Any part of an application for life insurance that can be proven to be a lie can void the policy. Companies that I know of will refund premiums paid, but will not honor the policy. Any intentional lie on an insurance form will void the policy if they find out. For every question on an application there are unique circumstances. If you have a claim that is being investigated or has been denied you should contact The Center for Life Insurance Disputes for a free consultation.
The first question is why was he not listed as a driver if he lives with you? If you can explain that to the insurance company, they should honor the claim. They may back charge you premium that you would have paid had he been on the policy. All drivers in the household, especially licensed youthfuls need to be listed on the policy.
If the birth year is wrong this needs to be brought to the insuring company's attention immediately as the rates and policy are based in part on the age and health condition of the insured. If incorrect information is listed on the policy then that could be grounds for denial of coverage. If a claim is denied because the birth year was answered incorrectly, for any reason, you still have a valid claim. You should contact The Center for Life Insurance Disputes for free counseling.
If they denied that claim for cause, such as fraud, then there is nothing you can do. If they did not have cause, you can try contacting the department of insurance in your state. That is of course, as long as you had comphrensive coverage on the policy. If you did not have coverage, they do not have to pay for anything.
A mOn anifestation clause on a full occurence policy completely changes and limits an insured's policy. Most insureds with a manifestation clause on their policy either do not know they have one, don't know what it is, or are looking for a cheaper policy not a quality policy. a normal full occurence policy as long as the work was done during the insured's policy period a claim has up to 10 years to manifest itself and for claim to be filed. However when a manifestation clause is placed on a policy it limits this to the claim must manifest itself with the insured's policy period. If the claim manifests itself after the policy period the claim will not be covered. It basically turns a policy into a claims made policy except they can say its an occurence policy and they usually leave out the fact it has a manifestation clause. Example: Full occurence policy without manifestation clause- June of 2007 a plumber fixes a pipe in a residence. August 2007 their general liability policy expires. Sept 2007 the pipe leaks due to being welded wrong the home owner files claim against the plumbers insurance company and becaue they were covered when the work was done in June claim is paid out. Policy with a manifestation clause- June of 2007 a plumber fixes pipe in residence. August their general liability policy expires. Sept 2007 the pipe leaks due to being welded wrong the home owner files claim against the plumbers insurance company and it is denied because of insured's *manifestation clause*. Although the work was done in June and the plumber had coverage at that time, the cause of claim did not manifest itself until Sept and their policy expired in August. If the pipe had leaked in August they "may* have paid claim. ***This is risky coverage! Think about if you did a job 1 day prior to the policy expiring. -Insurance Underwriter
How many 3s in 313433535333?
Is it true that one human year is equal to seven dog years?
If you are 13 years old when were you born?
Who would you swap lives with for a day?