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A federal district court in Pennsylvania has denied a life insurer’s motion to dismiss a breach of contract claim brought by the owner of a life insurance policy that arose after the insurer allegedly mailed a “lapse notice” to one of her sons.

The Case

Sally Perloff and her husband Neil Perloff alleged in the lawsuit they filed against Transamerica Life Insurance Co. that she owned a life insurance policy for her husband issued by Transamerica. After moving from Pennsylvania to Boynton Beach, Florida, the Perloffs asserted, they notified Transamerica of their new address.

The Perloffs contended that Transamerica mailed a “lapse notice” for failure to pay the premiums on the policy to their son Brandon Perloff and to the Perloffs’ home in Florida.