The insured-friendly waiver doctrine strikes again! An insured under two $5 million dollar life insurance policies defeated United States Life Insurance Company’s attempt to rescind his policies because of alleged material misrepresentations in the insurance applications.
The Supreme Court, New York County judge ruled that U.S. Life knew of reasons to claim rescission of the policies but waited 10 months to return the insured’s premiums – – a necessary component of rescission of a policy. The insurer also continued to accept premiums when it had a potential basis to cancel the policies. The court held that U.S. Life waived its right to rescind for taking too long to do so and for acting inconsistently with a claim of rescission by continuing to accept premiums.
If you own life insurance and you get a letter from your insurance company that your policy is being rescinded, call an experienced life insurance lawyer right away.
U.S. Life Ins. Co. in the City of N.Y. v. Menche, 2013 N.Y. Misc. LEXIS 898 (Supr. Ct., N.Y. Cnty 2013)
Gisonni Law Firm focuses its practice on life insurance claims and litigation for beneficiaries and policy owners in New York, New Jersey, and the tristate area. For an understanding of your legal rights from the perspective of a highly experienced life insurance attorney, call Gisonni Law Firm today.