Opinion ID: 178744
Heading Depth: 2
Heading Rank: 2

Heading: Termination of Whole Life Policy

Text: Wilson argues that Northwestern violated Insurance Law § 3211(a)(1) because no statutory written notice of cancellation was sent to Kenneth within six months after termination. As noted by the District Court however, Northwestern was not subject to the notice requirement of Insurance Law § 3211(a)(1) because Kenneth had elected to pay the premiums for the Whole Life Policy on a monthly basis. Id. at 710; see also N.Y. INS. LAW § 3211(f)(2) (McKinney 2006). Although Insurance Law § 3211(a)(1) requires an insurer to provide written notice that a policy of life insurance is going to terminate or lapse by reason of default in payment of any premium, § 3211(f) explicitly exempts from this notice requirement certain categories of policies, including [a]ny policy of insurance requiring the payment of premiums monthly or at shorter intervals. Id. § 3211(f). See also, e.g., Gerold v. Companion Life Ins. Co., 31 A.D.3d 378, 819 N.Y.S.2d 276, 278 (2006) ([T]he defendant was not required to notify the plaintiff that the policy lapsed because the insured elected to pay the premiums on a monthly basis.); McGarr v. Guardian Life Ins. Co. of Am., 19 A.D.3d 254, 799 N.Y.S.2d 19, 21 (2005) ([S]ince premiums were paid on a monthly basis, § 3211(a)(1) does not apply.); Reczek v. Nat'l Benefit Life Ins. Co., 20 A.D.3d 887, 798 N.Y.S.2d 816, 817 (2005) (It is undisputed that decedent had elected to pay the premiums on a monthly basis. Having made that election, decedent thereafter was required to make monthly payments and the notice requirement of section 3211(a)(1) was rendered inapplicable.); Elston v. Allstate Life Ins. Co. of N.Y., 274 A.D.2d 938, 712 N.Y.S.2d 185, 186 (2000) (Once the monthly automatic payment option for premiums was chosen the language of Insurance Law § 3211 was triggered, thus obviating the requirement that defendant provide written notification of cancellation prior to its termination of the policy.). Since Wilson raises no material issue of fact as to Kenneth's election to pay premiums on a monthly basis, [3] it is clear that Northwestern was not required to provide advance written notification of the Whole Life Policy's termination. Because Northwestern was not subject to the notice requirements of § 3211(a)(1), there is no basis for claiming Wilson's entitlement to the proceeds of the Whole Life Policy, and Northwestern's motion with respect to this policy was properly granted.