In a convoluted set of facts, U.S. District Judge Lewis Kaplan denied MetLife’s attempt to get out of a case brought by a life insurance beneficiary under a deceased postal worker’s life insurance policy governed by the Federal Employee Group Life Insurance program (FEGLI). The beneficiary spouse alleged that MetLife paid the wrong person by failing to undertake an appropriate investigation into the identity of the beneficiary. Apparently, the daughter of the decedent forged the true beneficiary’s signature numerous times on checks for proceeds of a Total Control Account. In addition to a breach of contract claim against MetLife, the Court also allowed a claim for bad faith to go forward under New Jersey law.
Herrera v. MetLife, 2011 U.S. Dist. LEXIS 145409 (S.D.N.Y. 2011)