Dr. John G. Griffith's Life Insurance Policy

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Mallor, Barnes, Langvardt, Prenkert, & McGrory, (2016 pp. 368-370) writes, “On November 15, 1998, Dr. John G. Griffith purchased a life insurance policy underwritten by United States Life Insurance Company unwritten through AMA Insurance Agency, Inc. (AMAIA). The Policy was for a 10–year term. The life insurance policy belonged to Dr. John G. Griffith was also the party that was insured by the policy. Dr. John G. Griffith’s wife Ms. Elizabeth Wilson was the primary beneficiary. Under the Policy, if Dr. Griffith died “while the policy insurance is in force,” then, upon presentation of proof of his death to U.S. Life, U.S. Life would pay Ms. Elizabeth Wilson the scheduled benefit. The scheduled benefit for death was $400,000.00 with an additional…show more content…
This period was called or known as the grace period. The insurance will stay in effect during this period. If the premium is not paid by the end of this period, such insurance will end at that time. United States Life may extend the grace period by written notice for missed or late payments. Dr. Griffith made timely payments through 2006. Dr. Griffith missed his May, 2007 payment. American Medical Association sent Dr. Griffith a reminder notice stating that a payment was to be made by 60 days to assure coverage. In June, 2007 American Medical Association sent Dr. Griffith sent a lapse notice and to insure coverage Dr. Griffith needed to reinstate his policy. On 23 July, 2007 Dr. Griffith notified Bank of America to make the payment. On 25 July, 2007 Bank of America sent a check to American Medical Association. American Medical Association rejected the check stating that Dr. Griffith sent the payment after the 30 day grace period and Dr. Griffith needed to present evidence of insurability to reinstate his policy. On 28 July, 2007 Dr. Griffith was killed and his wife Ms. Elizabeth Wilson filed a claim. The insurance company didn’t want to pay the
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