What if life insurance policy benefits use to a lapse in payment? Talk to an experienced life insurance lawyer.
Here are the Facts: Linda and Scott MacIntire submitted a joint application for term life insurance to the Armed Forces Benefit Ass’n (AFBA) in April of 1996. The payments were made automatically via a computerized bank deposit scheme, but for unknown reasons, the payments were never made. The few payments that the MacIntires did make were not enough to keep the policy in force and it lapsed on March 31, 1998 according to AFBA. Scott MacIntire died from a terminal illness in August of 1998 and Linda inquired regarding the policy in September of that year. Upon discovery of the failed automatic deposit setup, Linda tried to pay delinquent payments directly to AFBA, but AFBA denied the payments and coverage, stating that Scott’s policy had already been cancelled. Linda sued AFBA, alleging violation of the Texas Insurance Code
, violation of the DTPA
, breach of contract, negligence, breach of duty of good faith and fair dealing, breach of implied warranty, ambiguity of contract, seeking to recover the death benefits and additional damages. The trial court granted AFBA’s motion for summary judgment on the basis that no genuine issue of material fact existed. Linda appealed, claiming that genuine issues of material fact existed in her claims for breach of contract, breach of implied warranty and ambiguity of contract, DTPA violations, Texas Insurance Code, Section 541.060, breach of duty of good faith and fair dealing, and negligence.