Legal Question in Insurance Law in Maryland

How do I claim a policy from a company that has gone under?

Several years ago my grandparents took out a $1,000 life insurance policy with a company named Sunlife Insurance, which once operated out of Baltimore, Maryland. Years passed and in the late '80's both of my grandparents unfotunately passed away. My aunt, being their oldest surviving child, received the policy number and all information necessary to collect in on the policy. As some of you might unfortunately know though, the passing of a loved one is a hecktic time and for whatever reason she did not follow through on the completion of, or whatever necessary process there is, in order to collect paymnent from this insurance agency. About three years after the passing of my grandpaent's, Sunlife Insurance went out of business (I'm not sure whether they were bought out or just folded) and the policy was never cashed in. Now that she has come across the paper work for the policy that was never paid out, is my aunt entitled to the $1,000 sum that the insurance company never paid out and if so what steps must I take to collect the money? Thank you for your time and any help that you might be able to offer me


Asked on 8/01/02, 8:50 pm

1 Answer from Attorneys
G. Joseph Holthaus III Law Offices of G. Joseph Holthaus

Re: How do I claim a policy from a company that has gone under?

A successor in interest of the insurer MAY be obligated to pay out the policy. Much of this depends on how the succession occurred, the entity's corporate or entity registration, and the basis of the assumption of existing business. Limitations may have been expressed during the succession and these limitations may or may not be legally enforceable against a prior insured with an otherwise valid claim. This is a technical question and, unless you have other information, general information about the law in this regard cannot be provided.

Other matters may exist such as limitations where claims are not properly or timely made (i.e., claims substantiation requirements) as well as other restrictions of coverage as contained in the policy.

When confronted with a matter that requires legal advice, obtain the services of an attorney. Information in this e-mail is not legal advice but rather general information about the law. No attorney-client relationship has been formed as a result of this communication and no inference thereof should be taken by any reader of its contents.

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Answered on 8/02/02, 10:49 am


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