Life Insurance

Life Insurance And Beneficiaries

July 13, 2014 | Mark S. Humphreys

Dallas life insurance lawyers need to keep up with the law as it evolves throughout the United States. The Washington Examiner published an article on June 6, 2014, that is interesting reading. The title of the article is, First Circuit rules John Hancock Life Insurance doesn’t have to discover deaths, notify beneficiaries. Here is what the article tells us.

The U.S. Court of Appeals for the First Circuit has ruled that John Hancock Life Insurance Company did not breach its contract in a class action lawsuit in regard to how it handed unclaimed insurance policy proceeds.

The appeals court ruled that Richard Feingold’s class action lawsuit against John Hancock Life Insurance Company and John Hancock Life & Health Insurance Company was properly dismissed for failure to state a claim, according to the May 27 opinion.

Life Insurance Beneficiary And Bad Faith

June 29, 2014 | Mark S. Humphreys

Dallas life insurance attorneys need to know about this Federal case. It is a 1996, Southern District of Texas opinion. It is styled, Bates v. Jackson National Life Insurance Company. Here is some of the relevant information.

Bates’ children sued Jackson National for proceeds of a life insurance policy issued to Bates. Plaintiffs asserted causes of action for breach of contract, bad faith, Insurance Code violations and DTPA violations.

On October 31, 1991 and November 1, 1991, Bates was diagnosed with phlebothrombosis and diabetes, respectively. On November 12, 1991, Bates submitted an application to Jackson National in which he represented he had not consulted or been treated by a physician in the last five years and that he had not submitted to an x-ray or any laboratory studies or tests. Furthermore, Bates represented in the application that he had not been told he had any disease, abnormality or diabetes. The policy was issued and the application was attached to and made a part of the policy.

Beneficiary Of Life Insurance Can Assert First Party Claims

June 26, 2014 | Mark S. Humphreys

Life insurance attorneys in Fort Worth know that a beneficiary of a life insurance policy can assert claims against an insurer that denies benefits of a life insurance claim. This is pointed out in 1996, San Antonio Court of Appeals opinion styled, Mendoza v. American National Insurance Co. Here is some of the relevant information.

Jerry Mendoza was the named insured under a $25,000 life insurance policy purchased from American National on August 1, 1991. The October premium, which was due on the first, was not paid. The policy provided for a thirty-one day grace period.

The summary judgment evidence revealed that on Friday, November 1, 1991, the last day to pay under the grace period, American National’s agent and district manager, Leon Sitka, verbally agreed to extend the grace period to Monday, November 4, 1991. This agreement or representation by Sitka was contrary to the terms of the policy, which only authorized American National’s president, vice-president or secretary to extend the time for payment of premiums.

Life Insurance – Misrepresentation As To Net Worth

May 18, 2014 | Mark S. Humphreys

A trial result regarding the above issue is something a Dallas Fort Worth insurance lawyer wants to know.

An opinion from the Houston Court of Appeals (14th Dist.) deals with this issue. The style of the case Vasquez v. Reliastar Life Insurance Co. Here is the relevant information.

In March 2008, Russell Mackert and Beatrice Ramon submitted an application with ReliaStar for insurance on the life of Ramon, seeking an initial term of ten years for an amount of $2.5 million. The application named the Trust as the proposed beneficiary and owner of the policy and Mackert as trustee. The asserted purpose of the Trust was “Estate Conservation.” Mackert and Ramon also represented in the application that Ramon’s total net worth was $2.4 million, her annual interest and other income was $150,000, and she had never declared bankruptcy. Mackert and Ramon signed the application acknowledging that ReliaStar may seek to rescind coverage due to material misrepresentations.

Life Insurance – Missed Payments

April 24, 2014 | Mark S. Humphreys

Aledo life insurance attorneys need to know the effect of payments missed on a life insurance policy. To begin with, each policy is different and thus the policy language needs to be read and then applied to the facts of the situation.

A February 2014, opinion from the Houston Court of Appeals, 1st District dealt with this issue to the detriment of the beneficiary. The style of the case is Lambana v. AIG. Here is some of the relevant information.

Pamela Lombana (“Lombana”), acting as the trustee of the Lombana Investment Trust challenged the trial court’s rendition of summary judgment in favor of AIG on her claims against AIG for breach of contract, breach of an oral or implied contract to reinstate, promissory estoppel, negligence, violations of the Texas Insurance Code, violations of the Texas Deceptive Trade Practices Act (“DTPA”), breach of the duty of good faith and fair dealing, fraud, and fraud by nondisclosure. This appeals court affirmed the trial court decision.

Life Insurance And Missed Payments

April 19, 2014 | Mark S. Humphreys

North Richland Hills Lawyers who handle life insurance claims can read this case and then tell potential clients they better hire an attorney. This case is from the United States District Court, Northern District, Fort Worth Division. The style is Doretha Hall v. Fidelity & Guaranty Life Insurance Company. Here is the relevant information.

Fidelity issued a term life insurance policy to Mr. Hall in the face amount of $75,000.00. In his application, Mr. Hall designated Doretha as the beneficiary of the policy, and no changes to that designation were ever made. Mr. Hall also requested the premium payments be drafted from his checking account. However, the payment due November 1, 2010, in the amount of $73.65, was rejected because Mr. Hall’s checking account was closed. On November 8, 2010, Fidelity sent a notice of the rejected payment to Mr. Hall’s home address. On December 3, 2010, Fidelity sent Mr. Hall a late payment notice informing him that his premium payment was past due and that the policy would lapse if the premium was not paid by the end of the grace period. When Fidelity still had not received any payment, it sent a second late payment notice on January 3, 2011, informing Mr. Hall again that his payment was past due and that his policy would lapse if the premium was not paid by the end of the grace period. On February 2, 2011, Fidelity mailed Mr. Hall a lapse notice indicating that Mr. Hall’s policy had lapsed and terminated on December 2, 2010, because Mr. Hall had failed to pay his premiums. The lapse notice expressly stated that to apply for reinstatement, Mr. Hall must complete the enclosed application for reinstatement and submit it with the past due premium amounts. On February 10, 2011, Fidelity received a check in regards to Mr. Hall’s policy in the amount of $73.65. Fidelity held the check in suspense and then refunded it to Mr. Hall on March 18, 2011, because Fidelity did not receive a reinstatement application or the remaining past-due premiums.

Doretha notified Fidelity of Mr. Hall’s death on April 17, 2011. However, Fidelity denied the claim for benefits under Mr. Hall’s policy because the policy had lapsed and terminated for nonpayment of premiums prior to Mr. Hall’s death.

Life Insurance And Interpleader

April 1, 2014 | Mark S. Humphreys

Life insurance lawyers will have to deal with situations where the proceeds of a life insurance policy are interpleaded into the registry of a court. A February 2014, 14th Court of Appeals opinion dealt with this issue. The style of the case is, Branch v. Monumental Life Insurance Company. Here is some of the relevant information.

Monumental filed this interpleader to resolve competing claims to the proceeds of a $10,000 policy insuring the life of Archie Branch Sr. (“Archie”). The policy was obtained during Archie’s marriage to Loretta Young Branch (“Loretta”), and Loretta was the named beneficiary. Archie and Loretta divorced on May 3, 2011. Six weeks later, Archie died.

According to Loretta, she demanded the insurance proceeds as the named beneficiary, but Monumental refused payment. Monumental learned that a newspaper obituary identified five people as Archie’s children.

Life Insurance Claim Denial

February 9, 2014 | Mark S. Humphreys

Life insurance attorneys will tell you that the language used in the insurance policy is important to determining coverage. An experienced Insurance Law Attorney will also tell you there are many ways of getting around some of the language in a policy.

Here is a case where the facts were bad but the case still serves as an example of how the courts interpret policy language. The style of the case is Douglas v. Southwestern Life Ins. Co. It is a Tyler Court of Appeals opinion that was issued in 1964.

Here is some of the relevant information.

Misrepresentations In Life Insurance Policy

January 19, 2014 | Mark S. Humphreys

Weatherford lawyers who handle life insurance disputes need to know the law relating to when an insurance company can void a policy after it has learned of a misrepresentation. The particular statute can be found in Texas Insurance Code, Section 705.005.

A 1969 case from the San Antonio Court of Appeals helps to show how this statute works. The style of the case is, Prudential Insurance v. Torres.

The facts are substantially undisputed. Prior to January 5, 1967, Torres was an employee of Gonzaba Lumber Company, which was owned by Luis Gonzaba, brother of Mrs. Bertha Torres. For some time, Luis Gonzaba and some of his six employees had considered securing a group insurance policy to provide hospitalization and medical benefits.

Life insurance Reinstatement

November 28, 2013 | Mark S. Humphreys

Dallas life insurance attorneys need to read this opinion just issued from the Fifth Circuit Court of Appeals. The style of the case is, Cardenas v. United of Omaha Life Insurance Company.

This case arises from United of Omaha Life Insurance Company’s denial of Cardenas’s claim for benefits from a life insurance policy taken out by Cardenas’s daughter, Elvia Sierra. The policy lapsed and was subsequently reinstated; Sierra died thirteen months after the reinstatement. As required by the Texas Insurance Code, the policy contained a provision that it would become incontestable if it remained in force “for two years from its date of issue during the lifetime of the insured.” Although the policy does not have a provision dealing with contestability following reinstatement, the parties agree there is such a period. They differ over how the death of the insured during the contestability period will affect the reinstatement. The district court found that the reinstated policy never became incontestable because Sierra died before the two-year period ran. Cardenas argues that a section of the Texas Administrative Code controls and requires finding that the reinstated policy became incontestable.

United of Omaha Life issued a life insurance policy to Cardenas’s daughter, Elvia Sierra, on March 26, 2001. The policy lapsed for nonpayment of premiums in June 2005.