Our clients, a family grieving the sudden loss of their primary breadwinner, were plunged into both emotional and financial crisis when the deceased's life insurer repeatedly delayed the $40,000 policy payout. The company cited a need for an "extensive investigation" into the medical history on the application, implying a potential misrepresentation, and demanded voluminous records while offering no timeline.
The family faced mounting bills and imminent hardship, trapped by an insurer using procedural delays as a tactic to pressure them into a lowball settlement or simply wear them down.
We overcame this by taking immediate and assertive legal action that shifted all leverage away from the insurer. First, we formally demanded the full claim file and the specific, good-faith basis for their investigation under state unfair claims practice laws. Finding their reasoning was vague and unsupported, we then filed a detailed bad faith lawsuit, alleging the delay was unreasonable and caused demonstrable financial harm. We accompanied this with a powerful demand letter that outlined the severe emotional distress the delay was causing the bereaved family, creating a compelling narrative for a judge or jury.
Faced with the prospect of costly litigation, potential punitive damages for bad faith, and significant reputational risk, the insurer immediately capitulated, releasing the full $40,000 benefit plus interest within days.
Result: The family received the full policy amount with accrued interest, allowing them to cover immediate expenses and stabilize their finances during an immensely difficult time.
