Legal Question in Insurance Law in California

Cancelation of life insurance.

For decades I was paying life insurance.Four -five years back, I took a loan from this insurance.The loan was not paid in full, when the insurance company took the chance and opportunity to cancel my insurance for non payment of that loan.For decades my life insurance was paid via EFT. I was told to pay my loan or my life insurance will lapse.I was able to pay 50% of the amount required, but that was not enough. Since they had access to my bank acc. they found me in a vulnerable spot where my acc. was depleted, but there was always enough money to pay my monthly premium.They sent me a check, which I won't cash. I am asking to re-instate my insurance, they told me they would sent me info, but so far no contact with them. At my age of 79, they are afraid that I might die soon some and p[ay the face amount, therefore they are using all the trick in the books to cheat me of my life insurance


Asked on 12/02/15, 10:54 am

1 Answer from Attorneys
Edward Hoffman Law Offices of Edward A. Hoffman

I'm sorry to hear about your predicament. But while I sympathize with you, I don't agree that you're being "tricked" or "cheated." Maybe you are, but nothing you've told us supports the accusation.

You breached your loan contract, which (presumably) says the insurer can cancel your policy if you fail to make the required payments. You admit that you didn't make those payments, and it sounds like your breach was pretty substantial.

Perhaps the company could have been more lenient with you. But that's up to them. The law does not require the company to waive its contractual rights.

I can think of several plausible scenarios in which the law would be in your favor. They all depend upon facts that are not available to me, so I don't know whether any of them apply. The limited information you given us does not suggest that the insurer is doing anything improper -- or even that your age has anything to do with its decision. Do you have evidence that the company would treat a younger policyholder who committed a similar breach any better than it treated you?

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Answered on 12/02/15, 1:16 pm


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