Reviewed by Chad G. Boonswang, Esq.

During the COVID-19 emergency, New Jersey required life insurers to give policyholders extra time to pay their premiums. A class action I’m handling alleges that United of Omaha Life Insurance Company, a subsidiary of Mutual of Omaha, cancelled New Jersey policies without honoring those protections. If your New Jersey life insurance policy lapsed in 2020 or 2021, or a claim was denied because the policy lapsed during that time, you may be part of the class.

What Executive Order 123 Required

On April 9, 2020, Governor Phil Murphy signed Executive Order 123. It required insurers doing business in New Jersey to extend grace periods for premium payments during the COVID-19 emergency, including a 90-day grace period for life insurance premiums instead of the usual 30 days.

What the Lawsuit Alleges

The lawsuit alleges that the insurer let policies lapse after the standard grace period instead of giving policyholders the 90-day grace period and repayment options the order required. When a policy is cancelled that way, the owner loses coverage, and if the insured has died, the family may have been denied a death benefit it should have received.

Who May Be Included

You may be included if all of these apply:

  • The life insurance policy was issued in New Jersey.
  • The policy was in force on March 1, 2020, or was issued between March 2, 2020 and December 31, 2021.
  • The policy entered a grace period between March 1, 2020 and December 31, 2021.
  • The policy was cancelled or lapsed during that grace period.
  • The insurer didn’t provide the 90-day grace period or repayment options Executive Order 123 required.

What You May Be Entitled To

If the insured is still living, the policy may be eligible for reinstatement. If the insured has died, the beneficiaries may be entitled to the death benefit owed under the policy.

If Your Policy Was With a Different Insurer

Executive Order 123 applied to every life insurer doing business in New Jersey, not just the defendant in this case. If a different company cancelled your New Jersey policy during the same period, or denied a death claim because of a lapse during that time, I’ll review it to see whether the same protections apply. If your policy was issued in another state, other grace-period rules may apply.

Find Out If You Qualify

I’ll review your situation at no cost. To get started, visit my New Jersey life insurance page or contact me. I handle life insurance cases on a contingency fee, so there’s no fee unless I recover benefits for you. For other lapse and denial cases, see my work as a life insurance dispute lawyer.