Has your life insurance company written “RESCIND” to you? Or, sent you  a “Rescission” letter?

If so, your next action is the most important decision you will make about this life insurance policy.  Do you know what “rescission” means–and why the life insurance company has sent a small check to you, in the amount of the premiums paid on the policy?  Because the life insurance company now wants to “undo” the policy, act as if “it never happened at all.”  Meaning, no policy, no benefits.Rescission has become the insurance company’s secret weapon against the families of people who have life insurance policies.  Where insurance companies used to draft more an more exclusions, deeply buried in the “fine print” of the policy, to provide an out on actually paying benefits, now insurance companies attack the insured directly.  On every claim, the insurance companies begin a rigorous re-underwriting investigation of the application and the statements and omissions of the insured in the application.  Why? Because the insurance company seeks to avoid any payment on the life insurance policy–by saying there is no policy at all.

Rescission & Rescind.  When your insurance company says: We sold you a policy, but now that you have a claim, “actually, no, on second thought,  not really, there is no policy.”The life insurance company will say that they found a “false representation” in the application.  This is usually in response to one of the many confusing, vague, and unclear medical questions that they ask.  These medical questionnaires are full of traps for people, and if the life insurance policy needed within two years of when it was first issued, the life insurance company will do all sorts of things to say they were misled.  The life insurance company basically says there was something incomplete on the application, and if only the person filling it out had told the truth, they never would have issued the policy at all.  We see this all the time, and know just what to do when the life insurance company starts questioning the medical questionnaire and background.  We have all the needed cases, back to when California first became a state, to argue on your behalf, to keep the policy, and to get your life insurance benefits paid.

Denial of a claim.  It used to be an insured’s worry.  You have a claim, submit it, and the insurance company finds some “fine print” in an exclusion.  The insurance company would deny the claim.  Now, insurance companies have a new move.  Even more than just denying a claim under the policy, they will rescind the insurance policy.  You get a letter stating “rescission” or “rescind” and the insurance company sends you a small check, refunding the premiums on the policy.  Not the reason you bought an insurance policy in the first place.  No peace of mind here.

Don’t cash the check.  If you accept the return of premium paid, the insurance company argues you accept the rescission.  You may want to, but don’t.  It only makes your case more complicated.  The life insurance company will argue that you accepted the rescission, so you give you your right to sue.  While lawyers can argue whether this is correct–it is not–you should not give your legal opponent some new evidence to use against you.  Like the mistake of trying to argue with the life insurance company yourself, giving your opponent new evidence to use against you is a big mistake.  IF you have already done it, don’t lose hope.  We can help.  We have the arguments and can fight the life insurance company for you.