Legal Question in Insurance Law in California

Re: life insurance contract

Sounds like you have a valid cause of action for breach of contract. One question that is important is whether the contract is a written or oral contract. Both can be enforceable, but you get into potential proof problems an oral agreement.

Depending on the amount of money at stake, i.e., cash value of the policy, amount of benefit from the insurance policy, etc., you should probably speak with an attorney to discuss your options.

I would be happy to speak with you and your husband about your situation.

Caleb Donner

805-494-6557

Re: life insurance contract

You should contact an attorney to immediately notify

the insurer that you claim an interest in the policy.

This must be written.

Then the lawyer may be able to negotiate something

with the lawyers for the company. It may be that

this could be considered a form of wages so that

the labor commissioner might get involved. There

are penalties and wages are treated differently

from other debts in a bankruptcy.

This might also be an ERISA plan, where employee

benefits are involved. There may be a claim for

such where attorneys fees could also be recovered.

The key is to make sure the insurer won't allow the

company to cash in the policy, so that is why a

strong demand letter, perhaps with a copy of your

contract giving you "Vested Rights," should be sent

to the insurer. If company cannot get the money, then

they might just give up trying to cheat you since

they already have other problems.