Were You Denied California Life Insurance Benefits Due to Missed Premium? 

If you were denied California life insurance benefits or your policy was cancelled after missing a premium, don’t give up hope—there may be a way to have this decision reversed. Indeed, there are certain requirements insurers must meet under California law that can protect you against insurance policy cancellation or denial of California life insurance benefits.

How Does California Insurance Law Protect You?

Since Jan. 1, 2013, California insurance law has more thoroughly protected consumers from the denial of insurance benefits or cancellation of insurance policies due to a failure to pay premiums. These requirements are part of the California Insurance Code as well as California common law. Indeed, California insurance law is not the only additional protection enjoyed by residents of the state, including wage and hour laws and the California Invasion of Privacy Act.

Under these laws, the insurance company must provide the consumer at least a 60-day grace period from when the missed premium was due.

Prior to cancellation, the insurance company must provide written notice at least 30 days prior to the pending lapse and cancellation of the insurance policy informing the consumer.

Each year, the insurance company must provide an opportunity for the consumer to designate a third party (such as a trusted family member or friend) to receive important notices. This is meant as a sort of safety net wherein if the policyholder themselves misses or forgets the written warnings form the insurance company, they have a third party who can receive such notices.

These safeguards have been required under California law since 2013, and if a company fails to provide any or all of these safeguards, cancellation or lapse of the policy in question and resulting denial of benefits could potentially be considered invalid.

Have Any Lawsuits Been Filed?

Policyholders who attempted to claim their California life insurance benefits but were denied due to a cancelled policy have begun to pursue litigation.

One class action lawsuit was filed by the widow of a policyholder with MetLife. The plaintiff, Susan P., alleges that her late husband Michael P. purchased a life insurance policy from MetLife in Oct. 2003, paid the premiums dutifully for 12 years, and may have inadvertently missed a premium payment a single time in 2016. The lawsuit alleges that not only did he not receive a notice for this upcoming premium payment, he also had not been informed in the years prior that he could request such notice also be sent to a third party. According to the lawsuit, MetLife violated both California law and its own policy.

Can You Pursue Litigation?

If your rightful California life insurance benefits were cancelled any time after January 2013 and your insurance company cited the reasoning for the cancellation as failure to make premium payments, you may be able to join this class action lawsuit investigation. To qualify for this particular class action lawsuit investigation, at least one of the following must be true:

• Your policy was issued in California, OR
• The policyholder now lives in California

Pursuing litigation can be a daunting prospect, especially while dealing with an insurance company that doesn’t want to cooperate, so Top Class Actions has laid the groundwork for you by connecting you with an experienced attorney. Consulting an attorney can help you determine if you have a claim, navigate the complexities of litigation, an maximize your potential compensation.

Join a Free California Life Insurance Wrongful Termination Lawsuit Investigation

If you believe a life insurance company wrongfully cancelled your life insurance policy due to nonpayment of premium, or if you were the beneficiary of a life insurance policy that was terminated or for which a claim was denied for non-payment of premium, you may have a claim.

NOTE: Statutes of limitation may apply, so hurry! 

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This article is not legal advice. It is presented
for informational purposes only.