Court Favors Policyholder On Contested Grace Period.(Brief Article)

National Underwriter Life & Health-Financial Services Edition, November, 2000 by ARNOLD, CATHERINE

The U.S. Court of Appeals for the Third Circuit recently decided in favor of a New Jersey life insurance policyholder who failed to pay his insurance premium to New York based Guardian Life Insurance Company the month before his death.

In this case, Guardian Life Insurance Co. v. Goduti-Moore, the federal court allowed that because the first day of the policyholder's 31-day grace period fell on a Sunday, it should begin on a Monday, according to New York and New Jersey statutes, and did not expire prior to his death.

The policyholder, Kevin H. Moore, did not pay his monthly premium for August, which was due Aug. 4, 1996, according to the policy terms, and he died on Sept. 5, 1996. Guardian Life, according to court documents, held that Mr. Moore died...

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