What to do when Term Life Insurance plan is cancelled and not transfered?
My suggestion is that you contact a lawyer who specializes in Employment Law or Insurance Law. You may have several different ways of persuading the company to pay up. • The policy may have had language that kept it in force for a while after the cancellation. This will requiring obtaining the actual plan from the insurance company and/or her employer to check the language of the plan. A letter from a lawyer should get you what you need rather easily. • If the insurance company sat on the transfer papers (which appears likely) the insurance company could be in violation of: • E.R.I.S.A. http://en.wikipedia.org/wiki/ERISA • Your state’s insurance code. • Your state’s insurance regulations. • The company might be liable in court for all the three things listed above, plus negligence and/or the intentional tort of bad faith. http://en.wikipedia.org/wiki/Bad_faith
