Questions & answers · Life insurance
The life insurance company denied the death claim, saying the application was wrong. Can they do that?
Life insuranceDeniedTexasChecked Nov 5, 2026
From K.Actuary, founded by Sangmin Kwon, ASA · sources checked 2026-11-05 · Source: TDI View original ↗
In short
- In the first two years, a wrong answer on the form can lead to a denial.
- If so, the company must give back the premiums.
- Ask in writing which answer it used and when the policy started.
What this means
TDI says life insurance policies have a two-year contestable period. If the insured dies within this period, the company may review the information given on the application, and it can deny payment if it learns wrong information was given. If the company denies payment, it must return the premiums to the beneficiary [1].
But a wrong answer alone is not enough under Texas law. For a life, accident, or health policy, the Texas Insurance Code says a misrepresentation in the application "does not defeat recovery" unless it is "of a material fact" and "affects the risks assumed" [3]. A policy clause that makes the policy void for false statements in the application has no effect unless it is shown at trial that the wrong answer was "material to the risk" or "contributed to the contingency or event on which the policy became due and payable" — and whether it was material is "a question of fact" [4]. The company must also give notice that it refuses to be bound by the policy before the 91st day after it discovered the false statement; if the insured has died, that notice goes to the owners or beneficiaries [5].
After the policy's second anniversary (with premiums paid for those two years), a misrepresentation defense is not valid unless the company had notified the insured that it intended to rescind, or it is shown at trial that the misrepresentation was both "material to the risk" and "intentionally made" [6].
The company may also investigate the cause of death. During the first two years, companies usually won't pay if the cause of death is suicide; if the company doesn't pay, it must return the premiums [1]. A lapsed policy that was later reinstated starts a new contestable period, and so does a new policy that replaced an old one [1].
TDI's steps if you disagree: talk to the company first; then file a complaint with TDI; then, if you want to sue, look for legal help [2].
Your next step
+ deadline: ask the company in writing (1) which application answer it relies on, (2) why that answer was material to the risk, and (3) the date it discovered the problem and the date it sent its notice — so you can compare them with the 91-day rule [5]. Also ask for a copy of the application; Texas requires a life policy to come with a copy of the application and its questions and answers [7]. The sources above give no deadline for disputing a denial; check the denial letter and the policy. Whether a court would find a fact "material" is decided case by case — "Don't know yet" for any one claim.
Where this comes from (7)
[1] TDI · checked 2026-11-05
Life insurance policies have a two-year contestable period. If you die within this period, the company may review the information you gave on your insurance application. If the company learns you gave wrong information or didn't disclose something, it can deny payment. This can happen even if the wrong information was unrelated to the cause of death or was given by mistake. If a company denies payment, it must return…
[2] TDI · checked 2026-11-05
Step 1: Talk to the insurance company. You can resolve many issues by talking to your insurance company or agent. … Step 2: File a complaint with us. We can help with complaints against the insurance companies, agents, and adjusters we regulate. … Step 3: Get legal help. If you're still not happy with the outcome of your claim and you want to sue your insurance company, use these resources to find legal help.
[3] Texas Legislature · Insurance Code ch. 705 · Sec. 705.051 · checked 2026-11-05
Sec. 705.051. IMMATERIAL MISREPRESENTATION IN LIFE, ACCIDENT, OR HEALTH INSURANCE APPLICATION. A misrepresentation in an application for a life, accident, or health insurance policy does not defeat recovery under the policy unless the misrepresentation: (1) is of a material fact; and (2) affects the risks assumed.
[4] Texas Legislature · Insurance Code ch. 705 · Sec. 705.004 · checked 2026-11-05
Sec. 705.004. POLICY PROVISION: MISREPRESENTATION IN POLICY APPLICATION. (a) An insurance policy provision that states that false statements made in the application for the policy or in the policy make the policy void or voidable: (1) has no effect; and (2) is not a defense in a suit brought on the policy. (b) Subsection (a) does not apply if it is shown at trial that the matter misrepresented: (1) was material to th…
[5] Texas Legislature · Insurance Code ch. 705 · Sec. 705.005(b)-(c) · checked 2026-11-05
(b) A defendant may use as a defense a misrepresentation made in the application for or in obtaining an insurance policy only if the defendant shows at trial that before the 91st day after the date the defendant discovered the falsity of the representation, the defendant gave notice that the defendant refused to be bound by the policy: (1) to the insured, if living; or (2) to the owners or beneficiaries of the insura…
[6] Texas Legislature · Insurance Code ch. 705 · Sec. 705.104 · checked 2026-11-05
Sec. 705.104. MISREPRESENTATION IN APPLICATION FOR LIFE INSURANCE. A defense based on a misrepresentation in the application for, or in obtaining, a life insurance policy on the life of a person in or residing in this state is not valid or enforceable in a suit brought on the policy on or after the second anniversary of the date of issuance of the policy if premiums due on the policy during the two years have been pa…
[7] Texas Legislature · Insurance Code ch. 705 · Sec. 705.103 · checked 2026-11-05
Sec. 705.103. DOCUMENTS TO ACCOMPANY POLICY. Except as otherwise provided by this code, a life insurance policy must be accompanied by a copy of: (1) the policy application; and (2) any questions and answers given in connection with the application.
How we found this
We matched your question to 7 official sources, quoted the exact lines, and re-checked each quote against its source on 2026-11-05.
What we don’t know yet
Your own plan or notice may say something different. If your letter cites another rule, send it and we will look again.
Every answer is checked against the official rule it quotes.
Information only — not legal advice. Your plan, insurer or agency decides.
This answer quotes the official sources listed above, with the date we checked them. Your own policy, notice and state rules control. We are not your lawyer or your insurer. We don’t file, argue or negotiate claims for you — you send any letter or form yourself.
Related answers
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- My life insurance denied my claim for a death — why, and is that allowed?
- A life insurer denied the death claim, saying the application had wrong answers. Can they do that?
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