Get Misrepresentations In Insurance Applications Can Void The Policy

A policy or other contract that has no legal validity is described as void. When an insurance company voids a life insurance policy, it is usually due to the discovery of misrepresentation of material facts by the person insured.

What kinds of deaths are not covered by life insurance? If you intentionally lie on your application, die committing an illegal act or while engaging in a hazardous activity that's excluded by your policy, your life insurance beneficiary won't receive the claim.

But it's important to be aware that there are a few instances where life insurance won't pay out. Top reasons life insurance won't pay out may be because the policyholder lied on their application, their death was the result of suicide, or they passed away during the waiting period.

Misrepresentations must be intentional and material to the risk in order for the insurer to void the contract.

Insurance companies reserve the right to void policies with an unusually high number of claims, and often do so when it is cutting into their bottom line. Another reason why many homeowners' insurance claims are often voided includes undocumented changes to the property.

Due to the added risk health problems create for insurers, some pre-existing conditions can raise your premium or even disqualify you entirely from certain types of life insurance. A few common examples of pre-existing conditions include high blood pressure, diabetes, cancer, and asthma.

Misrepresentations or concealments of material facts made by an insured prior to a loss will typically provide the insurer with a right to rescind the policy. Whereas, those made after a loss will typically provide the insurer with a right to deny coverage for the submitted claim.

Under most states' law, if the policyholder made a material or false representation on its application, the entire policy and resulting claim will be voided.