March 30, 2017 @ 12:46 AM

Cooke v. Jackson National Life Insurance Company, 15-CV-817 (NDIL, March 20, 2017)


The life insurance company denied the claim after insured missed his premium payment on his term life insurance policy, and the initial 31 day grace period expired without payment. In Illinois, life insurance policies must contain a provision allowing a 30 day or one month grace period within which to make up a missed payment. If the insured dies within the grace period then the policy remains in effect and the benefits are owed, but the overdue premium is deducted from the insurance benefits.


Here, 18 days into the grace period the insurer changed the premium due from a monthly premium to a quarterly premium as allowed under the policy. We ...

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