Life Insurance: Settlements, Fraud, and Unfair Practices
Nationwide – Arizona – Florida – Washington
Insurance companies know that you are in a vulnerable position. Most likely, the last thing you want to do after losing a loved one is fight a lawsuit, and the insurance company knows this. Let us handle the legal fight, so you can take the time you need to mourn your loss and get back on your feet.
We Fight for Your Life Insurance Benefits.
At Garcia, Artigliere, & Schadrack, we have experience making insurance companies keep their promises. Our life insurance claim denial lawyers are trial tested. We can help you get the compensation you and your family are entitled. To discuss your claim with one of our life insurance lawyers, contact us today and schedule a free consultation. Don’t delay; call 1-800-281-8515.
Life Settlements
A life settlement is a financial transaction where an investor buys a life insurance policy from the policy owner for compensation less than the expected death benefit under the policy. The investor then makes any required premium payments and holds the policy until the death of the insured, at which time the investor is paid the death benefit under the policy.
At times, life settlements can be a favorable option for a senior, to access the death benefit of a policy for which he or she no longer has a good economic need to keep in force. A life settlement can pay such an individual more than the surrender value of the policy offered by the insurer, and he or she is relieved of the responsibility of making premium payments.
Contact the life insurance lawyers at Garcia, Artigliere, & Schadrack today if you believe you have been the victim of a fraudulent life settlement.
Fraudulent Life Insurance Denials
Unfortunately, as the life settlements industry grows, so too have the fraudulent and unfair schemes relating to life settlements which have resulted in investors and other industry players cheating policy owners to maximize profits for themselves and their firms. Garcia, Artigliere, & Schadrack has extensive experience protecting the rights of people who have fallen victim to these schemes.
STOLI / SPINLIFE
Some of these schemes, which have become increasingly common, are known as “Stranger Originated Life Insurance (STOLI)” or “Speculator Initiated Life Insurance (SPINLIFE)” where an investor approaches a senior and encourages the senior to purchase a life insurance policy that will be transferred only a couple of years later to the investor. There are various risks associated with STOLI and SPINLIFE schemes, including having a complete stranger having a financial interest in the senior’s early demise; the possibility of liability on the part of the senior or the estate of the senior to the insurer, who may be able to sue to rescind the policy; potential loss of the ability to purchase additional life insurance should a legitimate need for life insurance arise; and adverse tax consequences.
In addition, there have been reports of life insurance brokers, often hired by senior policy owners to sell the senior’s life insurance policy at the highest possible price, who instead are accepting secret commissions from life insurance companies in exchange for suppressing competitive bids from other life settlement companies. This practice unfairly reduces the amounts policy owners receive for their policies. The practice also violates the duties the broker owes to the policy owner to work to obtain the highest price possible for their client’s policy through competitive bidding.
Premium Financing
Another popular scheme, known as “premium financing”, is also being used increasingly to defraud seniors out of their life insurance policies. “Premium financing” involves the provision of loans for financing life insurance premiums, with the policy itself acting as security for the loan. That is, should the borrowing senior default on the loan, the lender often has the right to take ownership of the policy. Premium financing programs can be a legitimate financial and estate planning tool for seniors and their families. However, some premium finance companies are operating their companies to defraud seniors out of their life insurance companies rather than provide a legitimate financing tool.
Such fraudulent and unfair schemes involve loan programs which are devised with the intent of causing the accrual of extremely high or exorbitant interest (often greater than 100 percent of the initial loan amount) which the senior cannot possibly afford, leaving the borrowing senior with no choice but to relinquish his life insurance policy to the premium finance lender. The premium finance lender is then able to collect the benefits of the policy upon the senior insured’s death, or re-sell the policy on a secondary market for an enormous profit.
Contact Our Life Insurance Lawyers
Are you involved in a dispute over the rightful beneficiary of life insurance proceeds? Or has the insurance company denied a claim and refused to pay benefits?
Before taking no for an answer or meekly accepting a lowball offer, consult with our experienced life insurance lawyers who will evaluate your life insurance claim and fight for the benefits you are due.
At Garcia, Artigliere, & Schadrack, our life insurance lawyers offer aggressive representation to vindicate the rights of policy owners and beneficiaries. Contact us today for a complimentary case consultation. We’ll explain your legal options.