Losing a loved one is always difficult emotionally and financially, but a strong life insurance policy can at least ease your financial concerns. However, when an insurance company responds to your loved one’s death by voiding or terminating the policy meant to protect you, the situation becomes even more painful. If you are facing the rescission or wrongful lapse of a life insurance policy in Charlotte, an experienced life insurance attorney from our firm can help.
At Sasser Law Firm, we understand what is at risk and can guide you through the process with steady, experienced, and compassionate representation. Whether you are a beneficiary who discovers that a policy no longer exists or a policyholder who receives a cancellation notice, you have rights, and we will work tirelessly to protect them. Contact us today to schedule your consultation.
Rescission is one of the most aggressive actions an insurer can take. Rather than simply denying a claim, the company voids the policy, treating it as invalid and returning premiums instead of paying a death benefit. To justify rescission, insurers typically allege that the policyholder made a material misrepresentation on the original application, such as failing to disclose a medical condition, understating age, or omitting information about lifestyle habits. Often, these alleged misrepresentations were minor, inadvertent, or made by a broker or agent rather than the policyholder. However, insurers have a financial motivation to pursue rescission of a life insurance policy, particularly when it involves a large death benefit. The timing of rescission attempts, which often follow closely after you file a claim, reflects that motivation clearly.
Our attorneys will examine whether the alleged misrepresentation was truly material to the insurer’s decision to issue the policy, whether the insurer acted within the legally required timeframe, and whether the company followed applicable state insurance regulations. We have the courtroom experience and the determination to challenge insurers who exceed their authority or otherwise act in bad faith. When insurers in Charlotte attempt to void or wrongfully terminate a life insurance policy, our team of attorneys can pursue every available avenue to recover the benefits the insurer owes your family.
A policy lapse occurs when an insurer terminates coverage because of nonpayment of premiums. However, not every lapse is legitimate. The law requires insurers to provide proper notice before canceling a policy, and many policies include grace periods or automatic premium loan provisions specifically designed to prevent an unintended lapse. When an insurer fails to provide the required notice, misapplies available funds, or cancels a policy because of their clerical or administrative error, the resulting lapse may be wrongful. As with rescission, Charlotte insurers have a financial incentive to wrongfully end a life insurance policy and avoid engaging with the merits of a claim and paying a death benefit.
Our attorneys can review the full history of the policy, including payment records, correspondence, and any notices the law required the insurer to issue. If the lapse was the result of an error or a failure to follow proper procedures, we can pursue reinstatement of the policy or recovery of the death benefit through negotiation or, if necessary, litigation. We handle these disputes from the initial appeal through every stage of the legal process.
When an insurer annuls or wrongfully terminates a policy, families are left without the financial protection they need at the worst possible time. If you believe you are a victim of rescission or wrongful lapse of a life insurance policy in Charlotte, we are ready to support you.
At Sasser Law Firm, our lawyers bring decades of experience to every case, and we are not afraid to pursue difficult disputes. Contact us today to schedule a consultation and take the first step toward recovering the benefits you and your family deserve.
The Sasser Law Firm
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