Life Insurance Companies Can Deny Paying Death Claim If There Is Fraud
In some situations the life insurance policyholder can deny paying a claim, often times if there is fraud involved. For example, if the policyholder knew they suffered from a terminal illness but did not disclose that knowledge to the insurance company, then they committed fraud and the policy is subject to cancellation. Fraud or misrepresentation can be a gray area for the insurance company, but there are conditions which must be met in order for there to be a denial of claim.
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