Losing a loved one is difficult enough without having to battle an insurance company over the benefits they rightfully left behind. Yet, many families face delayed, denied, or disputed life insurance claims when they need financial support the most. Insurance companies often use complex policies and fine print to avoid payouts, leaving beneficiaries frustrated and overwhelmed.
At Daly & Black, P.C., we boast some of the finest life insurance claim lawyers Houston has to offer. If your claim has been denied or delayed, don’t accept their decision without a fight.
Call Daly & Black today for a free consultation.
Common Reasons Life Insurance Claims Are Denied
A life insurance policy is meant to provide financial security to beneficiaries after the policyholder’s passing. But filing a claim can be a confusing and difficult process, especially when insurers attempt to delay or deny payment.
Insurance companies often look for loopholes to avoid paying out benefits.
Common reasons for claim denials include:
Misrepresentation on the Policy
Insurers may claim the policyholder provided incorrect information about their health, lifestyle, or personal details.
Policy Lapses
If premiums were missed, insurers may argue the policy was no longer in effect.
Contestability Period Issues
If the insured person dies within the first two years of the policy, the insurer may investigate for fraud or misstatements.
Cause of Death Exclusions
Some policies exclude specific causes of death, such as suicide within the contestability period.
Beneficiary Disputes
If multiple parties claim to be the rightful beneficiaries, insurers may delay payouts until the dispute is settled.
Don’t let an insurance company’s denial be the final word. Contact Daly & Black, P.C. to fight back.
Bad Faith Insurance Practices
When insurers refuse to honor valid claims, they may be acting in bad faith. This includes:
- Unreasonable Delays – Stalling the claims process to frustrate beneficiaries.
- Failure to Investigate – Ignoring key evidence or refusing to conduct a proper review.
- Lowball Settlement Offers – Attempting to pay far less than what the policy guarantees.
- Wrongful Denials – Rejecting valid claims with no legal justification.
If an insurance company is acting in bad faith, we can take legal action to hold them accountable.
How Texas Law Protects You
Texas has laws in place to protect policyholders and beneficiaries from unfair insurance practices. These laws ensure that insurers act in good faith and fulfill their contractual obligations.
Here’s how Texas law safeguards your rights:
Unfair Claims Practices Act (Chapter 542):
This law protects policyholders from unfair claim settlement practices.
It requires insurers to:
- Acknowledge claims and begin an investigation within 15 days of receiving notice.
- Approve or deny a claim within 15 business days (approximately 30 calendar days) after receiving all required documents and proof of loss. If more time is needed, the insurer must provide a written explanation for the delay and may extend the decision period by up to 45 additional calendar days.
- Provide a valid reason for any denial or delay. Failure to comply with these requirements can result in penalties, including an 18% annual interest charge on unpaid claims and reasonable attorney’s fees owed to beneficiaries.
Unfair Methods of Competition and Unfair or Deceptive Acts or Practices (Chapter 541):
Texas law prohibits insurance companies from using deceptive or unfair tactics to avoid paying claims.
This includes misrepresenting policy terms or benefits, failing to conduct a prompt and fair investigation, or offering significantly less than the claim is worth without justification. Victims of such unfair practices can seek compensation for damages, including attorneys’ fees and penalties.
Guaranty Associations:
If an insurance company becomes insolvent, Texas has a Life and Health Insurance Guaranty Association that provides limited protection to policyholders. This ensures that beneficiaries receive at least part of their claim, even if the insurer is unable to fulfill its financial obligations.
Contestability Period:
Life insurance policies typically include a two-year contestability period, during which insurers can investigate claims and deny benefits if they find material misrepresentations on the application.
However, after this period, insurers can no longer deny a claim based on misstatements unless fraud is proven.
If your insurer is wrongfully using the contestability period to delay or deny a valid claim, legal action may be necessary.
Other Protections:
- Right to Appeal a Denied Claim: If a life insurance claim is wrongfully denied, beneficiaries have the right to dispute the decision and take legal action if necessary.
- Protection Against Retaliation: Insurers cannot penalize policyholders or beneficiaries for challenging claim denials or filing complaints.
- Legal Remedies for Bad Faith Insurance Practices: Policyholders may be eligible for additional damages if an insurer has acted in bad faith by unreasonably delaying or denying a claim.
Daly & Black, P.C. leverages these laws to ensure that insurers honor their commitments and pay out the benefits you deserve. If your claim has been denied or delayed, we are prepared to fight for you.
How Can a Denied Life Insurance Claim Lawyer Help?
At Daly & Black, P.C., we level the playing field against big insurance companies.
Here’s how we help:
- Review Your Policy – We analyze the fine print to determine if your denial was wrongful.
- Appeal the Decision – We challenge the insurer’s reasons for denial and provide strong counterarguments.
- Negotiate for Full Benefits – We fight for the maximum payout owed under your policy.
- File a Lawsuit if Necessary – If the insurer refuses to cooperate, we take them to court.
No upfront fees. We don’t get paid unless you win.
The Daly & Black Difference
At Daly & Black, P.C., we don’t just handle cases—we fight battles. Life insurance companies have entire legal teams dedicated to minimizing payouts. We push back against their tactics, challenging wrongful denials, delays, and bad faith practices.
When you work with us, you get a law firm that fights like your financial future depends on it—because it does.
A Legacy of Winning for Our Clients
Daly & Black, P.C. has a reputation for seeking significant settlements and verdicts for our clients. As a four-time Insurance Litigation Firm of the Year nominee and the 2022 winner, we have demonstrated time and again that we know how to win against the insurance giants. When your claim is on the line, you need a firm with a history of delivering results.
Legal Strategies Designed for Your Unique Case
No two life insurance claims are the same. Whether your claim was denied due to a policy lapse, a misrepresentation allegation, or a contestability period dispute, we build a custom legal strategy tailored to your specific situation. We leave no stone unturned in fighting for the compensation you deserve.
Guidance and Support Every Step of the Way
A denied life insurance claim can create financial uncertainty during an already difficult time. We understand the emotional and financial toll this situation takes on families, and we are here to provide guidance and support throughout the process.
From the initial consultation to the final resolution, our team is by your side, answering questions, explaining your rights, and ensuring you’re never left in the dark.
Committed to Fighting for You—No Matter What
At Daly & Black, we live by our motto: ALL IN. ALL THE TIME. That means we are fully committed to fighting for you until every avenue has been explored and every legal strategy has been pursued. You are more than just a case file to us—you are a partner in the fight for justice, and we won’t rest until we secure the outcome you deserve.
If you’re facing a denied or delayed claim, contact a Houston life insurance claim lawyer at Daly & Black, P.C. today. We are ready to fight for the benefits you are owed.
FAQ
Q: Why would a life insurance company deny a claim?
A: Insurance companies may deny claims for various reasons, including alleged misrepresentation on the application, policy lapses due to missed premium payments, or specific exclusions outlined in the policy.
Some claims are scrutinized during the contestability period—the first two years of the policy—where insurers conduct deeper investigations and often deny claims based on minor discrepancies. In some cases, insurance companies engage in bad faith tactics, using misleading justifications or unnecessary delays to avoid payouts.
If your claim has been denied, it’s critical to seek legal assistance to challenge the insurer’s decision and protect your rights.
Q: What should I do if my life insurance claim is denied?
A: If your life insurance claim is denied, the first step is to review the denial letter to understand the insurance company’s reasoning. Next, gather all relevant documents, including your policy details, payment history, and correspondence with the insurer. Insurers often deny claims based on technicalities that may not be legally justified.
Consulting with an experienced Houston life insurance claim lawyer can help you navigate the appeals process, challenge wrongful denials, and pursue legal action if necessary. Acting quickly can increase the chances of securing the payout you deserve.
Q: How can Daly & Black, P.C. assist with my claim?
A: At Daly & Black, P.C., we take a comprehensive, aggressive approach to life insurance claim disputes. Our team thoroughly investigates every case, reviewing policy terms, contestability issues, and denial justifications. We handle all aspects of the appeals process, negotiate directly with the insurance company, and take legal action if necessary.
With a proven track record in insurance litigation, we know how to challenge insurers and fight for the full benefits you are owed. You don’t have to navigate this battle alone—our team is here to stand up for you and ensure that the insurance company upholds its obligations.
Take Action – Fight Back Against Unfair Insurance Companies
If your life insurance claim has been delayed, disputed, or denied, don’t wait—get the legal support you need. A Houston life insurance claim lawyer at Daly & Black, P.C. can help you navigate the legal process and fight to secure the release of your claim.
Contact us today for a free review of your case