Thousands of New Jersey residents may have lost life insurance coverage during the COVID-19 pandemic, despite state protections that were meant to keep their policies active.
A new class action lawsuit alleges that one major insurer failed to follow the rules, putting families at risk by losing death benefits or life insurance coverage when they needed them most. This class action was recently certified with the Boonswang Law Firm representing over 6,000 life insurance policy owners and beneficiaries that may have been illegally cancelled.
Here, we’ll explain what legal protections were in place, what went wrong, and what recourse you may have if you were a victim of a similar practice.
COVID-Era Policy Cancellations Spark Legal Action
At the height of the COVID-19 pandemic, New Jersey issued emergency protections to help residents keep their life insurance policies active, even if they couldn’t make a payment on time. These protections included a 90-day grace period and the option to repay missed premiums over several months.
However, recent findings suggest that some insurance companies ignored these rules. One company in particular, United of Omaha Life Insurance (a subsidiary of Mutual of Omaha Insurance Company), appears to have canceled more than 6,000 policies during this period without honoring those protections, prompting the newly-approved class action lawsuit.
What Governor Murphy’s NJ State Order Required
In March 2020, New Jersey Governor Philip D. Murphy issued Executive Order 123 to protect New Jersey policyholders during the COVID-19 crisis. This order required all life insurance companies doing business in the state to provide temporary relief for missed premium payments, including:
- A 90-day grace period for late payments (instead of the usual 30 days); and
- The option to repay missed premiums in installments after the grace period
These protections were in effect for policies that entered a grace period between March 1, 2020 and December 31, 2021.
Was Your Policy Wrongfully Cancelled or Were You Denied Death Benefits?
If you are the owner of a New Jersey life insurance policy and it was canceled in 2020 or 2021, or were denied death benefits under a New Jersey life insurance policy after a loved one passed away, you may be entitled to the full protections offered by Executive Order 123. Living policyholders may be entitled to reinstatement of their life insurance policy, and beneficiaries may be entitled to compensation in the form of death benefits owed under the policy.
Eligibility Requirements for Protection of Executive Order 123
You may be entitled to the full protections of Executive Order 123 if:
- the life insurance policy was issued in New Jersey;
- the policy was active and in good standing as of March 1, 2020, or the policy was obtained any time between March 2, 2020, to December 31, 2021;
- the policy entered a grace period between March 1, 2020 and December 31, 2021;
- the policy was canceled or lapsed during that grace period; and
- the insurance company did not provide the 90-day grace period or repayment options required by Executive Order 123
Free Case Reviews Available with Boonswang Law
If you lost life insurance coverage during the COVID-19 pandemic or were wrongfully denied death benefits after a loved one died, regardless of what state you are in, Boonswang Law will review your case at no cost to see if you’re eligible for the protections of Executive Order 123 or similar orders. Whether your policy lapsed unfairly or your claim was wrongfully denied, we will fight for your coverage or compensation.
Contact us today for your free case review. Let us fight for the justice you and your family deserve.
About Boonswang Law – Our History of Fighting for Policyholders
As one of the nation’s leading life insurance law firms, Boonswang Law has spent more than 20 years fighting against claim delays and denials, policy cancellations with a corresponding failure to pay death benefits after a death, and unfair life insurance company tactics—and winning.
Here’s why policyholders and beneficiaries trust us to fight for their rights:
- Over $200 million recovered for clients across the U.S.
- No fees until we win your case
- Led by Chad G. Boonswang, Esq., a trusted advocate in life insurance litigation
- Proven track record of wins in both high-profile and small-scale cases
- We handle claim denials, delays, lapses, ERISA disputes, accidental death claims, and more
- A dedicated team of attorneys, paralegals, and legal staff committed to your case
- National reach with local attorneys in every state
Contact Boonswang Law To See If You’re Eligible for Compensation!
If you were denied death benefits or your life insurance policy was canceled during the pandemic, you may be eligible for legal protections. Our attorneys are prepared to stand up for families like yours, holding insurance companies accountable for the compensation you’re owed.
Contact us today for your free case review. We won’t let life insurance companies take advantage of your family.