Legal Question in Insurance Law in California

Fraudulent life ins. policy

I brought life ins. 20 yrs ago, it was sold as costing 80.00/mo. and price won't go up.

Well, the price is going up.

I researched on line and found that the exact policy I have has all ready been litigated.In '08 the supreme court of CA held ins is not a service or product and therefore consumer protection laws don't apply. The person who brought the case was actually a Farmers agent who was duped. I don't think I have any recourse, but am not sure. Ins. co. won't even tell me the maximum increase I may have to pay, so I can't make an educated decision about keeping the policy. The policy has on chance of reaching maturity on terms offered-this is what the suit was about. Do I have any recourse and should I terminate this policy? Ive paid 20K into it.


Asked on 6/03/09, 11:54 am

1 Answer from Attorneys
Steven Murray Steven W. Murray, APC

Re: Fraudulent life ins. policy

Fairbanks vs. Sup. Ct. was decided on April 20, 2009. All it held was life insurance is not a "service" within the meaning of the Consumers Legal Remedies Act in the Civil Code. The case did not discuss individual remedies other than those Civil Code statutes.

Consider seeing a lawyer who knows something about insurance policies and discuss what rights you might have under other laws or the common law. Good luck.

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Answered on 6/04/09, 2:38 pm


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