Why Would A Life Insurance Claim Be Denied? 
In New York State a life insurance company can deny a claim if the insured commits suicide during the first two years of the policy being in force . The suicide exclusion period varies from state to state , but you can easily find the specifics for your state by going to your states insurance department web site . There is precedent for an insurance company to deny a claim even after the standard two year contestable period in the case of fraud . Part of the reason for the limitation on the contestable period is to protect the insured from having his claim denied for a relatively minor misstatement on the application . However the intent was never to reward fraudulent activity . An example of fraud would be a person who knows he is HIV positive but does not disclose it on the application , then he has a friend stand in his place for the exam and blood test . Even if the insured dies after the contestable period the company can deny the claim if they can prove fraud . 