New York Court of Appeals building in Albany. Photo: Ryland West/ALM Defenses to Life Insurance Lapses for Non-Payment of Premiums
In New York, a life insurance policy can be terminated due to a single late or missed premium payment, even when the policy has been in effect for many years and payments were always timely made. This article discusses several scenarios when such a harsh penalty can be avoided.
April 18, 2022 at 10:00 AM
8 minute read
As illustrated by a Feb. 10, 2022 New York Court of Appeals decision, Bonem v. William Penn Life Insurance Company, a life insurance policyholder who either misses or is late in making a single premium payment, even by only a few days and even if the policy has been in effect for many years, can lose important coverage that is vital for surviving family members.
Although not raised by the particular facts of Bonem, policyholders have a defense to a policy lapse due to non-payment, if premium notices do not meet the strict requirements of New York Insurance Law §3211.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View All
Insurance Company Sues Over 180 Health Care Providers for Fraud Under RICO
3 minute read
New York Court of Appeals Tightens Pleading Standards Against Insurance Policyholder
7 minute read
Amid Growing Litigation Volume, Don't Expect UnitedHealthcare to Change Its Stripes After CEO's Killing
6 minute read
Post-Pandemic Increase in Live Events Prompts Need for Premise Liability Action
7 minute readLaw Firms Mentioned
Trending Stories
- 1Quiet Retirement Meets Resounding Win: Quinn Emanuel Name Partner Kathleen Sullivan's Vimeo Victory
- 2Avoiding the Great Gen AI Wrecking Ball: Ignore AI’s Transformative Power at Your Own Risk
- 3A Lesson on the Value of Good Neighbors Amid the Tragedy of the LA Fires
- 4Change Is Coming in the Trump Era. For Big Law, Change Is Already Here
- 5Proskauer Partner Leaves for Fried Frank in London
Who Got The Work
J. Brugh Lower of Gibbons has entered an appearance for industrial equipment supplier Devco Corporation in a pending trademark infringement lawsuit. The suit, accusing the defendant of selling knock-off Graco products, was filed Dec. 18 in New Jersey District Court by Rivkin Radler on behalf of Graco Inc. and Graco Minnesota. The case, assigned to U.S. District Judge Zahid N. Quraishi, is 3:24-cv-11294, Graco Inc. et al v. Devco Corporation.
Who Got The Work
Rebecca Maller-Stein and Kent A. Yalowitz of Arnold & Porter Kaye Scholer have entered their appearances for Hanaco Venture Capital and its executives, Lior Prosor and David Frankel, in a pending securities lawsuit. The action, filed on Dec. 24 in New York Southern District Court by Zell, Aron & Co. on behalf of Goldeneye Advisors, accuses the defendants of negligently and fraudulently managing the plaintiff's $1 million investment. The case, assigned to U.S. District Judge Vernon S. Broderick, is 1:24-cv-09918, Goldeneye Advisors, LLC v. Hanaco Venture Capital, Ltd. et al.
Who Got The Work
Attorneys from A&O Shearman has stepped in as defense counsel for Toronto-Dominion Bank and other defendants in a pending securities class action. The suit, filed Dec. 11 in New York Southern District Court by Bleichmar Fonti & Auld, accuses the defendants of concealing the bank's 'pervasive' deficiencies in regards to its compliance with the Bank Secrecy Act and the quality of its anti-money laundering controls. The case, assigned to U.S. District Judge Arun Subramanian, is 1:24-cv-09445, Gonzalez v. The Toronto-Dominion Bank et al.
Who Got The Work
Crown Castle International, a Pennsylvania company providing shared communications infrastructure, has turned to Luke D. Wolf of Gordon Rees Scully Mansukhani to fend off a pending breach-of-contract lawsuit. The court action, filed Nov. 25 in Michigan Eastern District Court by Hooper Hathaway PC on behalf of The Town Residences LLC, accuses Crown Castle of failing to transfer approximately $30,000 in utility payments from T-Mobile in breach of a roof-top lease and assignment agreement. The case, assigned to U.S. District Judge Susan K. Declercq, is 2:24-cv-13131, The Town Residences LLC v. T-Mobile US, Inc. et al.
Who Got The Work
Wilfred P. Coronato and Daniel M. Schwartz of McCarter & English have stepped in as defense counsel to Electrolux Home Products Inc. in a pending product liability lawsuit. The court action, filed Nov. 26 in New York Eastern District Court by Poulos Lopiccolo PC and Nagel Rice LLP on behalf of David Stern, alleges that the defendant's refrigerators’ drawers and shelving repeatedly break and fall apart within months after purchase. The case, assigned to U.S. District Judge Joan M. Azrack, is 2:24-cv-08204, Stern v. Electrolux Home Products, Inc.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250
