Legal Question in Insurance Law in Virginia

My mother applied for life insurance naming me as the beneficiary. At the time of the application I was named as the owner since I was to pay for the monthly payments. We submitted the application, which included all my banking information. I was told that if/when the application was approved then the payments would be taken from bank account. Insurance was denied, however, I noticed that they are in fact deducting the monthly premiums from my bank account.

If I were to let them continue taking the money would I have a reasonable chance to sue them for the payout on the policy when my mother does die even though they denied the coverage? Does taking the money imply that they assume the risk and have to cover her?


Asked on 11/12/09, 11:49 am

1 Answer from Attorneys
Michael Hendrickson Law Office Michael E. Hendrickson

No, not too likely (in my opinion). What you could sue for would be for the payments which were improperly taken from your bank account for life insurance coverage which had been previously denied and for which no valid policy existed.

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Answered on 11/19/09, 10:47 am


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