A "Life Waiver of Premium" benefit - also called an "LWOP" benefit- is a provision that is commonly included in life insurance policies which waives the premiums normally required to maintain life insurance coverage for insureds who are disabled.
This benefit is extremely important to a disabled person because often based on her medical history, she will be unable to obtain life insurance coverage elsewhere in the free market. She also may not be able to return to work and obtain group term life insurance coverage through an employer.
Each life insurance policy that has an LWOP benefit will define "disabled". The insured needs to meet this definition to qualify to have her life insurance premiums waived. Usually the standard for being disabled is very high - for example, being unable to work in any job for any wages.
If you make a claim for LWOP benefits and the claim is denied, or if you were receiving an LWOP benefit and your benefit is terminated, if your claim is governed by ERISA you have the right to appeal that decision. Even if your claim is not governed by ERISA, your life insurance contract may allow you to appeal that decision to the insurer. You may want to hire an attorney to help with that appeal.
Contact the Law Office of Katherine L. MacKinnon for more information!
Showing posts with label individual life insurance. Show all posts
Showing posts with label individual life insurance. Show all posts
Friday, September 22, 2017
Thursday, November 6, 2014
Life Insurance Win in MN Supreme Court!
After years of hard work for Ms. Jacky Larson, our firm won a huge victory in the Minnesota Supreme Court on behalf of anyone with life insurance in Minnesota!
Minnesota Stat 61A.11 says that: "In any claim upon a policy issued in this state without previous medical examination, or without the knowledge or consent of the insured, or, in case of a minor, without the consent of a parent, guardian, or other person having legal custody, the statements made in the application as to the age, physical condition, and family history of the insured shall be valid and binding upon the company, unless willfully false or intentionally misleading."
Larson v. Northwestern Mutual was about what the language "willfully false or intentionally misleading" means. Does it mean simply that the information given on a life insurance application was incorrect, and the applicant should have known the correct information? Or does the insurance company need to prove the insured subjectively intended to lie? We argued that the insurance company needs to show more than that the information given in the application was wrong - and the Supreme Court agreed:
"To rescind a life insurance policy under Minn. Stat. 61A.11 for 'willfully false or intentionally misleading' answers in an insurance application, an insurer must prove that the insured intended to deceive the insurer."
We are thrilled at the result, if you'd like to view the entire opinion click here.
Minnesota Stat 61A.11 says that: "In any claim upon a policy issued in this state without previous medical examination, or without the knowledge or consent of the insured, or, in case of a minor, without the consent of a parent, guardian, or other person having legal custody, the statements made in the application as to the age, physical condition, and family history of the insured shall be valid and binding upon the company, unless willfully false or intentionally misleading."
Larson v. Northwestern Mutual was about what the language "willfully false or intentionally misleading" means. Does it mean simply that the information given on a life insurance application was incorrect, and the applicant should have known the correct information? Or does the insurance company need to prove the insured subjectively intended to lie? We argued that the insurance company needs to show more than that the information given in the application was wrong - and the Supreme Court agreed:
"To rescind a life insurance policy under Minn. Stat. 61A.11 for 'willfully false or intentionally misleading' answers in an insurance application, an insurer must prove that the insured intended to deceive the insurer."
We are thrilled at the result, if you'd like to view the entire opinion click here.
Monday, January 28, 2013
Interested in Converting? Tread Quickly and Carefully!
If you are leaving work for a health related reason - for example medical leave for treatment of an illness, short or long term disability, or other medical reason - it may be imperative to find out about whether you can take your life insurance policy with you when you go!
Usually, if you have life insurance through a group policy at work, when you leave employment you have a right to convert that insurance into an individual policy. This right is guaranteed in the majority of states (see a list of some, but not all, states statutes at the end of this blog post for examples.)
When you purchase a life insurance policy, you are usually required to answer questions about your current and past health conditions, and maybe submit to some type of medical exam. This is so the insurer can decide how big of a risk you are,whether they even want to give you a policy, and how much they want to charge you in premiums. Their investigation of your health is called medical underwriting.
However, when you convert your group policy from work, you do not have to undergo any medical underwriting. You are guaranteed the right to continue your policy, although it will likely be for a higher premium than you were previously paying.
If you are leaving your job for a health related reason, it may be difficult for you to obtain life insurance again because of your medical history. It is therefore very important to find out the costs of and process for converting your group policy to an individual policy. In some states depending on the insurance policy's language, an insurer may not be required to notify you. So it may be the responsibility of the employee to find out whether they can convert their life insurance, and how to do it.
The moral of the story is: be proactive and find out the price and procedure for converting your life insurance policy. Be especially sure to find out the time limit to submit any required premiums and paperwork, since most policies have a very short time frame in which to complete the conversion process. Request the paperwork, even if you are unsure whether or not you want to go through with the conversion, so you have everything you need in case you do decide to convert.
(State statutes regarding life insurance conversion from a group policy into an individual policy: Arkansas, Ark. Code Ann. §23-83-122; California, Cal. Ins. Code §10209(b); Delaware, 18 De. Code Ann. Tit. 18 §3125; Georgia, O.C.G.A. §33-27-5; Illinois, 215 Ill. Comp. Stat. Ann. 5/231.1(h); Massachusetts, Mass. Gen. Laws ch. 175 §134A; Minnesota, 61A.09, subd. 1(h); New Jersey, N.J. Stat. Ann. §17B:27-73; New York, N.Y. Ins. Law §4216(d); Pennsylvania, 40 Pa. Cons. Stat. Ann. §532.7; Tennessee, Tenn. Code Ann. §56-7-2305(c).)
Usually, if you have life insurance through a group policy at work, when you leave employment you have a right to convert that insurance into an individual policy. This right is guaranteed in the majority of states (see a list of some, but not all, states statutes at the end of this blog post for examples.)
When you purchase a life insurance policy, you are usually required to answer questions about your current and past health conditions, and maybe submit to some type of medical exam. This is so the insurer can decide how big of a risk you are,whether they even want to give you a policy, and how much they want to charge you in premiums. Their investigation of your health is called medical underwriting.
However, when you convert your group policy from work, you do not have to undergo any medical underwriting. You are guaranteed the right to continue your policy, although it will likely be for a higher premium than you were previously paying.
If you are leaving your job for a health related reason, it may be difficult for you to obtain life insurance again because of your medical history. It is therefore very important to find out the costs of and process for converting your group policy to an individual policy. In some states depending on the insurance policy's language, an insurer may not be required to notify you. So it may be the responsibility of the employee to find out whether they can convert their life insurance, and how to do it.
The moral of the story is: be proactive and find out the price and procedure for converting your life insurance policy. Be especially sure to find out the time limit to submit any required premiums and paperwork, since most policies have a very short time frame in which to complete the conversion process. Request the paperwork, even if you are unsure whether or not you want to go through with the conversion, so you have everything you need in case you do decide to convert.
(State statutes regarding life insurance conversion from a group policy into an individual policy: Arkansas, Ark. Code Ann. §23-83-122; California, Cal. Ins. Code §10209(b); Delaware, 18 De. Code Ann. Tit. 18 §3125; Georgia, O.C.G.A. §33-27-5; Illinois, 215 Ill. Comp. Stat. Ann. 5/231.1(h); Massachusetts, Mass. Gen. Laws ch. 175 §134A; Minnesota, 61A.09, subd. 1(h); New Jersey, N.J. Stat. Ann. §17B:27-73; New York, N.Y. Ins. Law §4216(d); Pennsylvania, 40 Pa. Cons. Stat. Ann. §532.7; Tennessee, Tenn. Code Ann. §56-7-2305(c).)
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