Household Life Insurance Company Improperly Denying Credit Disability Insurance Benefits

Pendley, Baudin & Coffin Law Firm, LLP is investigating claims of Household Life Insurance Company improperly denying credit disability insurance benefits.  Household Life Insurance Company is a subsidiary of HSBC.  Household Life Insurance Company primarily sells its credit disability insurance through other subsidiaries of HSBC, including Beneficial Mortgage Company and Mortgage One Corporation d/b/a HFC Mortgage Corporation.

 The credit disability insurance is routinely sold during a mortgage closing.  The credit disability insurance appears to pay the policyholder's mortgage each month the policyholder is disabled but Household Life Insurance Company stops the mortgage payments after a twenty-four (24) month period. Household Life Insurance Company argues that it can stop the mortgage payments because the credit disability insurance policy contains a "Critical Period" which limits the number of months that Household Life Insurance Company must pay benefits for one period of disability.  However, Household Life Insurance Company does not disclose the Critical Period at the time the credit disability insurance is purchased.  Some policyholders are not told about the Critical Period in their credit disability insurance policy until after they are disabled and Household Life Insurance Company is about to improperly cut off their benefits. Even if the policyholders are provided a copy of a certificate of insurance after the mortgage closing, the certificate of insurance is ambiguous and confusing, and does not adequately disclose the Critical Period.

 Insurers have an affirmative duty to fairly deal with their insured's in good faith. Household Life Insurance Company's failure to properly and adequately pay its insured's under the credit disability insurance may result in statutory penalties, including bad-faith damages and attorney's fees.  In instances where an insured is able to prove bad faith conduct against their insurer, the penalties and damages may be substantial. Several lawsuits have been filed concerning the enforcement of the "Critical Period" in Household Life Insurance Company's credit disability policies.

 Contact Pendley, Baudin & Coffin if Household Life Insurance Company has stopped, or threatened to stop, your credit disability insurance payments.  Pendley, Baudin & Coffin Law Firm will investigate your claim and if necessary, file a lawsuit against Household Life Insurance Company to recover the losses and damages you have suffered from the denial of your credit disability insurance benefits.