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Denied Claim

When an Insurer Says You Misrepresented Something

This is among the more serious denials, because the insurer is not only refusing the claim — it may be trying to unwind the policy entirely and return your premiums.

Denial versus rescission

Denying a claim leaves the policy in place. Rescission treats the policy as though it never existed. The second is far more damaging and generally requires more of the insurer, so it matters which one you are actually facing — read the letter carefully.

Materiality is usually required

Not every inaccuracy on an application supports a denial. The misstatement generally has to be material — meaning it would have changed whether the insurer issued the policy or on what terms. An immaterial error is not a license to walk away from a claim.

Who filled in the form

Applications are frequently completed by an agent from information given over the phone. Where an answer was recorded incorrectly by someone acting for the insurer, that is a materially different situation from a policyholder concealing something.

The time limit on contesting a policy

Many life and health policies become incontestable after a set period, after which the insurer generally cannot void coverage for application errors. If your policy has been in force for years, ask whether that period has run.

What you can do about it depends on your state

This describes the denial itself, which works much the same everywhere. Whether you can sue under a statute, what you can recover, and how long you have differ sharply — choose the state where your policy was issued.

Common questions

Can an insurer cancel my policy over an application mistake?

Only in defined circumstances, and usually only where the misstatement was material — meaning it would have changed the decision to insure or the terms. Minor inaccuracies generally do not qualify.

The agent filled in the form, not me.

That matters. Where an agent recorded an answer incorrectly, responsibility for the error is a live question rather than an assumed one.

Is this what happened to you?

A free, confidential review can tell you whether the denial holds up — no cost, no obligation.

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General information, not legal advice. Insurance law differs by state and every policy is different.