WHAT IS THE NAME OF THE CASE AND WHERE IS IT PENDING?

Linhart v. New York Life Insurance Company and New York Life Insurance and Annuity Corporation, 5:21-cv-01640 (D. CA 2021) was filed in 2021 and is pending in the United States District Court for the Central District of California.

WHAT IS THE LAWSUIT ABOUT?

The plaintiff, Barbara Linhart, alleges in her complaint that the defendants, New York Life Insurance Company and New York Life Insurance and Annuity Corporation (collectively “New York Life”), failed to provide statutorily mandated forms and annual notices required by the California Insurance Code. As a result, on behalf of herself and others that are similarly situated, plaintiff contends that New York Life is required to honor life insurance policies that were improperly terminated prior to the appropriate notices being provided.

More specifically, California Insurance Code sections 10113.71 and 10113.72 were designed to protect against life insurance policies from lapsing and went into effect on January 1, 2013. Section 10113.72 requires life insurance companies to give their policyholders an opportunity to designate at least one additional person to receive notice of lapse or termination of a policy for non-payment of a premium (“Offer to Designate Notice”).

The lawsuit claims that New York Life failed to comply with the Offer to Designate Notice for life insurance policies that were issued or delivered prior to January 1, 2013.  The lawsuit further claims New York Life breached its contract under life insurance policies issued or delivered prior to January 1, 2013, by not giving proper notice to policyholders, and that therefore those policies did not terminate and are still in effect. The lawsuit also claims that New York Life’s breach of contract resulted in a denial of payment of death benefits to beneficiaries who would have had claims for benefits under such policies.

As damages for New York Life’s alleged violation of California law, the lawsuit seeks payment of full life insurance policy benefits due, pre-judgment interest, and other relief. The lawsuit also alleges New York Life acted in bad faith under the applicable California laws. 

New York Life Insurance and Annuity Corporation has denied the allegations and raised certain affirmative defenses, and New York Life Insurance Company has filed a motion to dismiss the complaint against it.

WHAT IS A CLASS ACTION?

In a class action, one or more individuals or entities, called Class Representatives (in this case, Mrs. Linhart), sued on behalf of others who have similar claims. All the other individuals or entities who have similar claims are putative “class members.” The motion for class certification has not yet been filed but is expected to be submitted later this year. 

WHO ARE THE DEFENDANTS?

The defendants are New York Life Insurance Company and New York Life Insurance and Annuity Corporation.

AM I A MEMBER OF THE PROPOSED CLASS?

If you are the beneficiary of a life insurance policy that was issued by New York Life prior to January 1, 2013 and the policy lapsed and the insured has died, it is possible you are a member of the proposed class.

WHO ARE THE LAWYERS PURSUING THE PROPOSED CLASS ACTION AGAINST NEW YORK LIFE?

The plaintiff is represented by three law firms with extensive experience in insurance matters and complex litigation. They are:

                                                     Joseph M. Vanek 

                                                     John P. Bjork 

                                                    SPERLING & SLATER, P.C.

                                                    55 W. Monroe Street, Suite 3200

                                                    Chicago, IL 60603

                                                    Christopher Pitoun 

                                                    Hagens Berman Sobol Shapiro LLP

                                                    301 North Lake Avenue, Suite 920 

                                                    Pasadena, CA 91101

                                                    David S. Klevatt 

                                                    KLEVATT & ASSOCIATES, LLC

                                                    77 West Wacker Drive, Suite 4500

                                                    Chicago, IL 60601  

HOW DO I GET ADDITIONAL INFORMATION?

You may receive additional information by contacting Joe Vanek via email at jvanek@sperling-law.com or by phone at (312) 224-1502.