Incontestability Of Life Insurance Policies in The State of Indiana

Incontestability Of Life Insurance Policies in The State of Indiana
April 5, 2011 jamesludlow

I had a recent case where an individual had passed away from a heart attack.  Although this individual had a life insurance policy at the time of his death, his widow was having difficulty persuading the life insurer to pay the policy proceeds. Although her husband had faithfully paid premiums on this life insurance policy for many years, after receiving notice of his death and a claim made by the man’s widow for the policy benefits, the life insurance company suddenly became very interested in whether the life insurance application that had been filled out 6 years previously had disclosed all of her husband’s health history.

In fact, when the widow made a claim on the policy, the life insurer asked that she provide them with the name and address of every doctor that her husband had seen for the past 15 years.  While the widow had nothing to hide, she had the uncomfortable feeling that this insurer was going to go though her husband’s medical records with a “fine tooth comb” to see if there was any way they could avoid paying the claim.

Fortunately, under Indiana law, a life insurance company only has two years after a policy is purchased and remains in force to contest anything that was stated in the application.  This is called an incontestability period.  Thus, after two-years, Ind. Code 27-1-12-6 states that a life insurance company may not contest anything that was stated in the life insurance application.  After pointing this statute out to the life insurer in this case, they quickly paid the policy proceeds.

If you or a loved one is being given the “run around” by an insurance company, give me a call for a free consultation regarding your legal rights.

Contact Indiana Life Insurance Claims Attorney James F. Ludlow

Many people don’t think they can afford an experienced insurance litigation attorney, especially when they may have thousands of dollars of unpaid medical bills or are struggling to pay their mortgage because they have been unable to work because of an accident or an untimely death of a loved one. To address this worry, I offer free consultations with no obligation whatsoever. My firm works on a contingency-fee basis, and I don’t get paid unless I obtain a successful recovery for you.

If you were seriously injured in an accident because of another person’s negligence, contact James F. Ludlow Attorney at Law to discuss your case. Call me toll-free at (877) 897-9466 or submit the simple form on the Contact Us page.