Legal Definitions - rejection of claim

A rejection of claim occurs when a formal request for payment, a benefit, or recognition of a debt is officially denied, either in full or in part, by the party responsible for evaluating that request. This denial is typically communicated in writing and often triggers a process where the person or entity whose claim was rejected can formally challenge the decision.

While this term is frequently encountered in probate law (the legal process of administering a deceased person's estate), it can also apply in other contexts where claims are made to agencies or individuals.

• Example 1: Probate Estate

  Imagine Mr. Henderson passes away, and his estate is being managed by his daughter, Sarah, as the executor. A local landscaping company submits a bill to the estate for lawn care services they claim Mr. Henderson received in the months leading up to his death. Sarah reviews Mr. Henderson's financial records and finds no invoices or payments to this company, and she knows her father always did his own gardening. Based on her investigation, Sarah formally sends a written rejection of claim to the landscaping company, stating that the estate does not acknowledge the debt.

  This illustrates a rejection of claim because the executor of an estate has formally denied a debt that a creditor asserted was owed by the deceased. The landscaping company would then have the option to challenge Sarah's rejection in court.

• Example 2: Insurance Policy

  Ms. Chen files a claim with her auto insurance company after her car sustains damage in a parking lot. She believes the damage was caused by another vehicle, but the insurance company's investigation concludes that the damage was pre-existing rust and not related to a new incident. The insurance company then sends Ms. Chen a letter detailing their findings and formally issuing a rejection of claim for the repair costs.

  This demonstrates a rejection of claim because an organization (the insurance company) has formally denied a request for benefits (payment for repairs) based on their assessment that the claim does not meet the policy's criteria. Ms. Chen can then pursue an internal appeal or other legal avenues to protest this decision.

• Example 3: Government Benefits

  Mr. Davies applies for unemployment benefits after being laid off from his job. The state unemployment agency reviews his application and determines that he was terminated for cause due to a violation of company policy, which, under state law, disqualifies him from receiving benefits. The agency then sends Mr. Davies an official letter notifying him of their decision, which constitutes a rejection of claim for unemployment assistance.

  This exemplifies a rejection of claim as a government agency has formally denied an individual's request for a specific benefit (unemployment payments) because they did not meet the established eligibility requirements. Mr. Davies would typically have the right to appeal this rejection through the agency's administrative process.