how long does an insurance company legally have to investigate a claim?

[belindagray]

What is the name of your state?
California

I am one of four beneficiaries on my father’s life insurance policy. I live in California but he lived in Colorado and I think the life insurance company is located in Texas. Anyhow, his policy was not quite two years old when he died. The insurance company is investigating his application and having the doctors send his medical records. As I understand it, this is quite normal, however it is taking a very long time. My father died almost 5 months ago and the last time I spoke to the insurance person handling our claim he said he had still not received the medical records from my father's doctors. He said it could even take another 5 months to resolve the investigation. This seems very unreasonable to me and my question is how long does an insurance company legally have to investigate a claim?

 

[Dandy Don]

There is no specific amount of time--they can take as long as they need. What was your father's cause of death, and did he have any afflictions/diseases?

I hate to say it because it is bad news for you, but in almost all cases like this they are going to look for any disease he had to see if it was reported on his life insurance application, and if it wasn't, then they are going to deny a payout by saying he had a pre-existing condition that wasn't reported to them.

 

[belindagray]

There is no specific amount of time--they can take as long as they need. What was your father's cause of death, and did he have any afflictions/diseases?

I hate to say it because it is bad news for you, but in almost all cases like this they are going to look for any disease he had to see if it was reported on his life insurance application, and if it wasn't, then they are going to deny a payout by saying he had a pre-existing condition that wasn't reported to them.

He died of "natural causes." He had been diagnosed with an aneurysm and had a series of TIA's but these things were diagnosed or happened after he had the filled out the application for the policy. Is this bad?

 

[Dandy Don]

On the contrary, it will probably work out in your favor. An aneurysm is normally not predictable so it is not very likely that the insurance company will be able to find this as a pre-existing condition.

 

[belindagray]

Thank you for your help!