footballfanppl;
Could you tell us what reason was given for your claim being denied? Since you placed this on a public forum, I'm sure you will not mind sharing.
I know guys that have successfully claimed from API (LIPS) and are very happy with the way the claim process was handled. To me the API rules are pretty simple; lose your flying license - receive benefits. Unless of course, your case falls into one of the exception categories.
There have to be checks and balances - I am not saying this applies to you, but I certainly don't want my contributions going towards anything other than legitimate claims.
Have also read other threads on this forum referring to "Loss of Income" vs. "Loss of License" - guys are clutching at straws. The rules have never insinuated payments for anything other than Loss of License.