MEMORANDUM & ORDER On September 19, 2016, plaintiff Herman Brettler, in his capacity as trustee of the Zupnick Family Trust 2008 (the “Trust”), commenced this action against Allianz Life Insurance Company of North America (“Allianz”), seeking a declaration that a life insurance policy issued by Allianz (the “policy”) remained in effect. Compl., Dkt. 1-1. On December 6, 2018, this Court granted Allianz’s motion to dismiss under Federal Rule of Civil Procedure 12(b)(6), finding that because the previous owner of the policy did not provide Allianz with written notice of its assignment to the Trust, as the terms of the policy required, the assignment was ineffective and the Trust lacked contractual standing. See MTD Order, Dkt. 27, at 8-9. On appeal, the Second Circuit held that the question of whether a policy owner’s failure to comply with this type of written notice requirement renders an assignment ineffective under New York law is likely a question best answered by the New York Court of Appeals, given the lack of binding precedent on this issue. See 2d Cir. Mandate, Dkt. 39, at 4. However, in hope of disposing the matter without the need for certification, the Second Circuit remanded and directed this Court to determine, in the first instance: (1) whether plaintiff’s claims are time-barred under New York law, and (2) whether the policy was assignable on May 24, 2016, when it was allegedly transferred back into the Trust’s ownership. Id. Upon review of the parties’ supplemental briefs, the Court finds that plaintiff’s claims are not time-barred and plaintiff has plausibly alleged that the lapsed policy was assignable as of May 24, 2016. Accordingly, dismissal under Rule 12(b)(6) is warranted, but only on the grounds identified in the December 2018 order. Factual Background and Procedural History1 On April 7, 2008, Allianz issued a life insurance policy to the Trust, valued at $8,000,000, on the life of Dora Zupnick. Compl. 4. On May 24, 2012, Allianz received notice that the Trust was assigning its full interest in the policy to Miryam Muschel. See Dkt. 17-1. Retelling a now familiar story, the following year, Allianz sent Muschel a grace period notice, dated May 4, 2013, that stated $117,810.90 in premium payments was due to Allianz by June 8, 2013, the end of the grace period. Compl.
10-11. The Trust purportedly issued Allianz a check for the requested amount on June 7, but on June 25, Allianz advised Muschel that the check had not been honored by the bank. Id.
