Opinion ID: 2994788
Heading Depth: 2
Heading Rank: 1

Heading: The Policy Lapses

Text: It should be noted at the outset that at the bench trial Chubb was unable to produce a copy of the premium-due notice it allegedly sent to Sylvia Morris prior to lapsing her policy nor did the carrier introduce the testimony of an employee who specifically recalled sending Morris a notice./2 Despite the absence of a copy of the actual premium-due notice sent to Morris, Chubb maintains that it sent such a notice to Morris on April 22, 1997, in the normal course of its business. Hotaling testified at trial that he did not receive such a notice and that he would have been aware if Morris had received such a notice because he was in charge of paying their family bills. Chubb additionally asserts that in June 1997 it sent a lapse pending letter to Morris alerting her to the fact that her life insurance policy would lapse if a premium payment was not received within the policy’s grace period. Chubb introduced a copy of this letter at trial, which reads in relevant part: Dear Ms. Morris, Currently your policy does not have enough value to cover the monthly expenses due on May 08, 1997. We are concerned that your policy will lapse without value on July 08, 1997 unless you take immediate action. The minimum payment is $854.72. Please understand that if this policy lapses, you are losing the financial security and protection this insurance coverage provides you.