Virginia | Insurance Law
Legal Question
When my parents took out their mortgage with a local bank they also purchased a mortgage life insurance policy that would pay off the loan in the event of the death of one of my parents. The policy states that payment will be made immediately upon notification of death. My father passed on May 13, 2011. Mother notified the bank within a week and provided a copy of the death certificate. The payments were current when father passed.
The problem mother is having is that the bank is saying they cant find who the policy is with. The bank has merged twice and the branch manager is saying that the paperwork was lost in the merger. The payments on this policy were current as well because it was tacked on to the mortgage. Now, no one is wanting to honor this contract and pay the balance owed.
My question is, even though the bank has merged, is the contract still legal and binding and should be honored? When she has tried to discuss the problem with the bank manager all she wants to talk about is mother being behind on the payments. Too top this all off, the manger she is trying to get things worked out with, is the same manager who also signed the contract years ago when the policy was taken out.
Thank you for your time.
Share This On:
Legal Answer
|
Read More Answered By: Michael E. Hendrickson |
|
|
