the California insurance law firm Gianelli & Morris filed a lawsuit in the United States District Court for the Central District of California alleging Banner Life has acted unlawfully in allowing a life insurance policy to lapse without first complying with California legal requirements designed to protect policyholders.
The class action complaint seeks damages for breach of contract and violation of the Unfair Competition Act, plus declaratory relief. The case is Aphrodite Tina Weinstein-Nernberg v. Banner Life Insurance Company (case no. 2:21-cv-9270).
As detailed in the plaintiff’s complaint filed with the court, the case concerns a life insurance policy issued to the plaintiff’s husband in 1998. A premium payment was missed in November 2020, and when the plaintiff notified the insurance company of her husband’s death in March 2021, she was told that the policy had lapsed due to nonpayment and was not in effect to cover her loss.
The complaint alleges that Banner Life violated sections 10113.71 and 10113.72 of the California Insurance Code when it terminated the policy for nonpayment of premium. The laws provide the following requirements for all life insurance policies issued in the State of California