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Dawson and Rosenthal

5 Examples of Concealment in Insurance Claims

Insurance is an important part of everyday life. Whether you have life insurance through work or you purchased it yourself, it is important to know what can get you in trouble. Aside from an insurance company engaging in bad faith practices, you can cause the insurer to deny your claim for various reasons. These are often known as concealment in your insurance claim. At Dawson & Rosenthal, our bad faith insurance attorneys fight for your right to compensation.

Working in a High-Risk Profession

When you complete an application for a life insurance policy, you will need to provide the profession in which you work. Some people decide to lie on the form by hiding their true profession. This is often done because they worry the insurance application will be denied because of their high-risk profession. Your premium will likely be higher if you disclose your high-risk profession.

Not Disclosing That You Are a Smoker

Another common concealment in insurance claims is failing to disclose that you are a smoker. This is a required question when applying for life insurance. Life insurance companies will automatically assign higher premiums to applicants who admit that they smoke. Insurance companies often deny the payment of claims if the person covered died of a smoking-related illness after failing to disclose this information on their application.

You Engage in Dangerous Hobbies

Dangerous hobbies include rock climbing, skydiving, white water rafting, and more. If you engage in these activities regularly, you should declare them on your life insurance application. If you conceal these hobbies and die in an accident related to one, the claim filed by your surviving family member might be denied.

Failing to Disclose a Serious Health Problem

When applying for life insurance, you will be required to disclose your health history. For some, this leads to concealment because they fail to list cancer or any other type of serious health problem for fear of higher premiums or having their application denied. Should you fail to disclose your condition and you die from it, the health insurance company will likely deny any claim. 

Be mindful that most life insurance policies require a health examination prior to acceptance. The exam could be as simple as blood work and as detailed as a thorough exam by a doctor assigned by the insurance company.

Concealment Can be Committed by the Insurance Company

The insurance company providing you with the life insurance policy can also commit concealment. This often happens when the adjuster working with you fails to inform you of a specific lower rate if you meet certain criteria or complete your application by a certain date. You need to be vigilant when applying for life insurance and try not to disclose too much information to the adjuster.

Have a Bad Faith Insurance Claim Issue? Call an Attorney Today

If you believe your insurance claim was denied in bad faith by your insurance company, it is time to discuss your situation with an experienced attorney. Call the office of Dawson & Rosenthal toll-free at (800) 598-5017, or submit our contact form to schedule a consultation with one of our bad faith insurance attorneys.