Providers Deny Long-Term Care Insurance
Coverage to Qualified Policyholders
Some of the nation’s largest long-term care insurance providers have found themselves embroiled in litigation surrounding their failure to payout a significant number of valid claims. Although a number of insurance companies have come under scrutiny, much of the litigation has been focused on John Hancock, Penn Treaty, Conseco and Banker’s Life.
Wrongly Denied Long-Term Care Insurance Claims
A large number of the wrongly denied long-term care insurance claims have involved aged, frail, policyholders, raising suspicions as to whether, or not the denials are mistakes or reflect a conscious effort to defraud certain policyholders. Sources investigating the wrongly denied claims are of the belief that many insurance companies make it so hard for aged, frail policyholders to access their coverage so that they either give up and accept the denied claim, or die before a resolution is reached.
Elderly patients suffering from diabetes, Alzheimer’s and Parkinson’s can cost long-term care insurance providers a great deal of money; more than was initially forecast by provider projections. Elderly patients receiving long-term care have a tendency to survive longer than the insurance companies expected, resulting in significantly-higher annual payouts over a longer period of time. With regards to Conseco, their long-term claim payouts actually exceeded premium revenue by 2002.
Insurance providers got into the multi-billion dollar long-term care insurance business because of the potential profitability. Once the realization set in that long-term care insurance was not the goldmine that it initially seemed, insurance providers sought to substantially increase premiums to help cover their costs. Many people believe that delaying policy payouts and wrongly denying valid claims represents another way through which such companies have sought to limit their costs and maximize their profits.
Long-Term Care Insurance Fraud
Many of the long-term care insurance providers claim that their occasional failure to accommodate valid policyholders is an unfortunate reality in an industry rife with fraud. The insurance providers in question have stated that they are committed to providing policyholders with fair and satisfactory service. Conseco have made the case that their overall number of insurance department complaints actually decreased by 20 percent from 2005 to 2006.
However, employees representing all the insurance providers in question have provided sworn depositions regarding deliberate attempts to slow the payout process to a near halt in certain cases. Ignoring policyholders, providing them with incorrect paperwork to fill out, requiring paperwork not specified in the policy, rescinding claims without due cause, and denying coverage for certain state-licensed assisted-living facilities, are just a few of the many bureaucratic obstacles that have been implemented in effort to avoid claim payouts for as long as possible. Policyholders are now fighting back by taking their insurance providers to court.
Long-Term Care Lawsuits
If you or a loved one has been a victim of a long-term care insurance provider’s failure to live up to their contractual obligation, you may be entitled to receive compensation to offset any costs related to your financial and emotional suffering. The Law Offices of Justice Lawyers boast some of the most experienced personal injury lawyers Pensacola, Florida has to offer. The lawyers and staff representing Justice Lawyers are adept at litigating a wide variety of personal injury lawsuits and have considerable experience handling insurance company lawsuits. Contact Justice Lawyers at 877 810 4808 to learn more about your legal rights associated with insurance fraud.
The attorneys of the Law Office of Justice Lawyers are personal injury lawyers in Pensacola who protect victims of auto accidents, personal injury, wrongful death, defective drugs, consumer fraud, insurance fraud, product defects and defective medical devices, such as Guidant and Medtronic Pacemakers, and potentially harmful drugs, such as Ortho Evra. When you think of the top personal injury lawyers or car accident lawyers in Pensacola, think of Justice Lawyers.