Lapse in premium payments
Life insurance denials can occur when the policyholder has not timely made premium payments for the policy.
Under New Jersey and New York life insurance laws, a policy cannot be cancelled immediately after a payment is late. There are laws that provide a grace period after the payment due date before the policy can be terminated. Most life insurance policies, in fact, contain a grace period in their terms and conditions. The grace period may be dependent upon whether the premiums are due on a monthly, quarterly or yearly basis.
The life insurance company may also be required to send a lapse notice to the insured.
Sometimes, even when the policyholder has not made timely premium payments, the beneficiaries may still have recourse. For instance, when there has been an inconsistent premium payment history, life insurance companies sometimes incorrectly register the premium payments, allocating them to time periods when it would have deemed the insurance not to be in effect, rather than properly applying them to future time periods. Life insurance companies therefore, at times, deny coverage when it should have been in effect under the law and the terms of the policy.
With vast experience as a life insurance attorney, Eric Dinnocenzo is able to understand the premium payment history in conjunction with the policy terms, and the New Jersey and New York life insurance laws, in order to scrutinize if there has been a wrongful claim denial.
Please contact life insurance lawyer Eric Dinnocenzo at (212) 933-1675 for a free consultation to determine if you have a valid life insurance denial claim.