When Cheri Poe’s husband died, his insurance company told her that he had had no coverage at the time of his death and that she could not make a claim for any benefits. This class action brings Northwestern Mutual Life Insurance Company, alleging that the company did not follow the requirements of California’s insurance laws before canceling his policies.
The class for this action is all persons designated as beneficiaries under individual life insurance policies issued in California before January 1, 2013 by Northwestern Mutual Life Insurance Company that were terminated for nonpayment of a premium due on or after January 1, 2013 and where the deaths of the insureds occurred between November 12, 2017 and November 12, 2021 while the policies were in a terminated status.
Scott Poe, took out two life insurance policies with Northwestern, in 2001 and 2002. In 2016, when he married Cheri, she was added as a beneficiary, along with his two sons from a former marriage. Northwestern set up an Insurance Service Account to deduct payments for the policies from his Citibank account, on or around the 21st of each month.
The premiums were paid regularly until the payment due on December 21, 2017. The complaint alleges, “Shortly before that date, and unbeknownst to Scott Poe, Citibank froze his checking account.”
The policies, which were issued before the insurance law in question was passed, allowed for a grace period of 31 days. Northwestern sent Poe a number of notices after payments were rejected, but the complaint alleges that Northwestern did not fulfill the requirments of the law.
According to the complaint, insurers must do three things: “(1) provide a grace period of at least 60 days for nonpayment of premium; (2) mail a notice of termination for any nonpayment of premium to the policy owner and any other person designated to receive notice of the termination within 30 days of the premium due date and at least 30 days prior to the termination date; and (3) annually notify the policy owner of the right to change or make a designee for receiving the notice.”
Although the insurance policies in question in this case were issued before the law took effect, the complaint notes, “The Statutes became effective January 1, 2013 and their requirements apply regardless of whether a policy was originally issued prior to that date.”
How did Northwest violate the laws in question? The complaint claims it “did not provide a prospective 60-day grace period from the premium due date, did not mail notices of termination within 30 days of the premium due dates and/or at least 30 days before the termination dates, and it did not provide an annual notice of the right to change or make a designee for receiving the notice of termination.”
Article Type: LawsuitTopic: Insurance
Most Recent Case Event
Northwestern Mutual Life Policy Terminations California Complaint
November 12, 2021
When Cheri Poe’s husband died, his insurance company told her that he had had no coverage at the time of his death and that she could not make a claim for any benefits. This class action brings Northwestern Mutual Life Insurance Company, alleging that the company did not follow the requirements of California’s insurance laws before canceling his policies.
Northwestern Mutual Life Policy Terminations California ComplaintCase Event History
Northwestern Mutual Life Policy Terminations California Complaint
November 12, 2021
When Cheri Poe’s husband died, his insurance company told her that he had had no coverage at the time of his death and that she could not make a claim for any benefits. This class action brings Northwestern Mutual Life Insurance Company, alleging that the company did not follow the requirements of California’s insurance laws before canceling his policies.
Northwestern Mutual Life Policy Terminations California Complaint