This is fundamentally unfair. Fortunately, states have wised up. They have passed laws designed to stop insurance companies from cancelling life insurance applications in this way. In Missouri, if you are enrolled in a group life insurance policy—usually through your employer—the insurance company has to give you a copy of your completed application. This gives you the chance to correct any mistakes in it, as well as make yourself aware of any hidden requirements buried in the fine print.
If you do not receive your application, the insurance company cannot use your statements in it to deny benefits. And if they cannot use your statements against you, then they have no evidence you committed fraud or failed to follow hidden terms.
So if you are the beneficiary of a life insurance policy and they deny you benefits because of something in the application, find out if they ever sent the insured person a copy of his or her application.
If the application was never provided as required by law, we may be able to reverse the insurance company’s denial and get the life insurance benefits for you.
