MassMutual Life Insurance Claim Denials - Gianelli & Morris
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MassMutual Life Insurance Claims

Life insurance policies are frequently touted as one of the most trustworthy and conservative investments available. Often seen as a necessity for parents of young children or those with spouses who don’t work, life insurance should be a safety net for when the unthinkable happens and a family loses their main income earner unexpectedly, as well as a source of income for families or retirees as a return on the investment of years of premiums paid.

MassMutual accused of failing to pay premiums and death benefits that policyholders are owed

While any incident of bad faith by an insurer can leave policyholders at a loss as to how they’ll move on without critical benefits, denial of life insurance claims can turn a devastating situation into a nightmare. The MassMutual Life Insurance Company has been accused by customers across the country of denying valid claims filed after the death of a policyholder. The multinational insurer has also been the subject of numerous class action lawsuits accusing them of withholding payment of premiums that customers are entitled to receive. If you believe you’ve been the victim of bad faith conduct by MassMutual or another life insurance provider in California, contact the experienced Los Angeles insurance bad faith lawyers at Gianelli & Morris for a free consultation on your claim.

Unpaid dividends lawsuits result in $37.5 million settlement for policyholders

Mutual life insurance policies offer policyholders a way to not only receive coverage in the event of a death or catastrophic event but also a source of investment income. The basic principle behind mutual life insurance policies is that, once insurance companies have enough revenue from premium payments to cover claims it may receive from its policyholders, they will pay dividends to those policyholders. Unfortunately, insurers are left to calculate the amount of those dividends themselves, and they may tend to look for ways to avoid paying dividends whenever possible.

A policyholder named Karen Bianchi fought back against these unfair practices by filing a class action lawsuit on behalf of policyholders. After years of litigation, MassMutual agreed to settle the claims that they had failed to pay out necessary dividends to their policyholders, totaling 2.7 million customers of MassMutual from 2001 to 2015.

Insurers only profit off claim denial

Life insurance providers like MassMutual don’t make a profit by paying out every claim in full. That’s why they put so much effort into searching for reasons to deny every claim or allocate funds in such a way as to avoid paying out dividends that customers are owed. Common reasons that MassMutual and other life insurance providers offer for canceling policies or denying claims include:

  • Unpaid premiums
  • Misstatements on original policy applications resulting in rescission
  • Breach of contract
  • Lapsed coverage
  • Policy exclusions, appropriate or not, necessitating denial of your claim

Bad faith insurance lawsuits require lawyers with a special set of skills

While many policyholders have filed lawsuits against MassMutual, few have been successful. It takes a special type of law firm to succeed in a claim for bad faith or other improper conduct against a massive multi-billion-dollar corporation such as MassMutual. The insurance lawyers at Gianelli & Morris have spent years battling giant insurance companies on behalf of policyholders. Our seasoned California bad faith insurance attorneys have the unique set of skills and experience you need on your side when seeking the compensation you deserve after a wrongful claim denial or bad faith policy rescission. Receive a free consultation on your case by contacting Gianelli & Morris as soon as possible after a claim denial.

Call Gianelli & Morris for help with Bad Faith Claims Against Insurance Giants

For seasoned, knowledgeable, and effective legal help with an insurance bad faith claim in California, contact the Los Angeles insurance lawyers at Gianelli & Morris for a free consultation at 213-489-1600.

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