Life Insurance, Annuity and Health Insurance Litigation
Life Insurance, Annuity and Health Insurance Litigation
Our knowledge of the industry’s complexities and unique legal challenges serves our insurance clients well, but our experience is not only limited to litigation.

Kelley Drye provides our insurance clients with aggressive representation through all phases of litigation from pre-litigation through trial and appeal.  We also provide strategic advice on emerging insurance law and regulatory developments related to life and health insurance and annuity industry issues, to assist them in identifying and managing risk and decreasing their litigation exposure.  Our more than 20 years of substantive courtroom and NASD and FINRA experience ranges from the most simple policy lapse cases to complex multi-defendant class actions.  As National Counsel for our clients in cases pending across the country, we are able to leverage our extensive insurance law experience with local counsel’s practical savvy to reach the best and most efficient outcomes for our clients.

Kelley Drye understands that our clients must maintain good relationships with state insurance regulators, and we are sensitive to the client’s reputation in the marketplace.  Our team efficiently and discreetly manages our clients’ responses to inquiries and investigations by state regulators and law enforcement agencies.  We also advocate for the insurance industry on secondary market issues.  For example, our amicus brief on behalf of the American Council of Life Insurers assisted the Delaware Supreme Court in upholding fundamental insurable interest principles.

Litigation Experience

We have obtained early dismissal or favorable resolution of matters involving:

  • Life insurance products procured for the benefit of strangers though STOLI, IOLI, or ChOLI fraud, and other policies that lack insurable interest or are otherwise against public policy

  • Various advanced markets issues such as life insurance policies used in conjunction with Internal Revenue Code Sections 79, 412(i) and 419(e) Plans

  • Secondary market disputes involving original policy owners and beneficiaries, life settlement providers, secondary market purchasers, or policy administrators

  • Company-owned or Keyman insurance

  • Funeral insurance and funeral insurance trust litigation

  • Policy rescission actions based on material health and financial misrepresentations or fraud

  • Contested policy lapses and death benefit claims

  • Claims asserted under consumer protection regulations and statutes

  • State and federal securities laws claims

  • Vanishing premium litigation

  • Brokerage or General Agent sales practice, compensation, and placement disputes

  • Interpleader actions

  • Insolvency proceedings and preference actions


Advice and Counseling

Kelley Drye also provides strategic advice to our insurance clients about a wide range of state law and regulatory issues impacting insurers in today’s marketplace, including:

  • Compliance with state law policy notice and grace period timing requirements

  • Insurable interest issues

  • Policy notice content and formatting

  • Analysis of state insurance laws and regulations with emphasis on business implications for insurers

  • STOLI/IOLI/ChOLI risk assessment and recent case law analysis

  • Policy prospectuses

  • Risk disclosure forms for various advanced markets products

  • Registered representative and general agent liability issues

We have obtained final judgments in a number of matters on behalf of our clients, including:

  • A final judgment on behalf of the American Council of Life Insurers declaring that a bulletin promulgated by the Illinois Department of Insurance requiring insurance companies performing services regarding Illinois insureds to keep all of their books, records, documents and any or all papers relating to business, performance, operations and affairs of the company within the state of Illinois was, as a matter of general policy, invalid and unenforceable.

  • Summary judgment on behalf of an insurer finding that a policy holder’s tender of a check returned for insufficient funds is not a payment and the policy, therefore, lapsed and the insurer was not required to send any further notices to the policy holder.

  • Summary judgment on behalf of an insurer finding that, based on the terms of a life insurance policy, if the insured dies while the policy is in default, the insurer was allowed to deduct the amount of premiums owed to bring the policy out of default, from the death benefit, see John Hancock Life Insurance Co. v. Katzman, et al., 2015 WL 3767296, 2015 U.S. Dist. LEXIS 78892 (S.D.N.Y. June 17, 2015).

  • Summary judgment for an insurer dismissing a claim for damages based on the policy holder’s purchase of a life insurance product that was purchased as part of a plan under Internal Revenue Code Section 419(e), based in part, that the insurer had no duty to the policy holder and the policy holder was unable to articulate any cognizable injury, see Nassar v. Madera et al., 2016 U.S. Dist. LEXIS 94219 (S.D.N.Y. July 19, 2016).
 
 

Overview

Our knowledge of the industry’s complexities and unique legal challenges serves our insurance clients well, but our experience is not only limited to litigation.

Kelley Drye provides our insurance clients with aggressive representation through all phases of litigation from pre-litigation through trial and appeal.  We also provide strategic advice on emerging insurance law and regulatory developments related to life and health insurance and annuity industry issues, to assist them in identifying and managing risk and decreasing their litigation exposure.  Our more than 20 years of substantive courtroom and NASD and FINRA experience ranges from the most simple policy lapse cases to complex multi-defendant class actions.  As National Counsel for our clients in cases pending across the country, we are able to leverage our extensive insurance law experience with local counsel’s practical savvy to reach the best and most efficient outcomes for our clients.

Kelley Drye understands that our clients must maintain good relationships with state insurance regulators, and we are sensitive to the client’s reputation in the marketplace.  Our team efficiently and discreetly manages our clients’ responses to inquiries and investigations by state regulators and law enforcement agencies.  We also advocate for the insurance industry on secondary market issues.  For example, our amicus brief on behalf of the American Council of Life Insurers assisted the Delaware Supreme Court in upholding fundamental insurable interest principles.

Litigation Experience

We have obtained early dismissal or favorable resolution of matters involving:

  • Life insurance products procured for the benefit of strangers though STOLI, IOLI, or ChOLI fraud, and other policies that lack insurable interest or are otherwise against public policy

  • Various advanced markets issues such as life insurance policies used in conjunction with Internal Revenue Code Sections 79, 412(i) and 419(e) Plans

  • Secondary market disputes involving original policy owners and beneficiaries, life settlement providers, secondary market purchasers, or policy administrators

  • Company-owned or Keyman insurance

  • Funeral insurance and funeral insurance trust litigation

  • Policy rescission actions based on material health and financial misrepresentations or fraud

  • Contested policy lapses and death benefit claims

  • Claims asserted under consumer protection regulations and statutes

  • State and federal securities laws claims

  • Vanishing premium litigation

  • Brokerage or General Agent sales practice, compensation, and placement disputes

  • Interpleader actions

  • Insolvency proceedings and preference actions


Advice and Counseling

Kelley Drye also provides strategic advice to our insurance clients about a wide range of state law and regulatory issues impacting insurers in today’s marketplace, including:

  • Compliance with state law policy notice and grace period timing requirements

  • Insurable interest issues

  • Policy notice content and formatting

  • Analysis of state insurance laws and regulations with emphasis on business implications for insurers

  • STOLI/IOLI/ChOLI risk assessment and recent case law analysis

  • Policy prospectuses

  • Risk disclosure forms for various advanced markets products

  • Registered representative and general agent liability issues

Experience

We have obtained final judgments in a number of matters on behalf of our clients, including:

  • A final judgment on behalf of the American Council of Life Insurers declaring that a bulletin promulgated by the Illinois Department of Insurance requiring insurance companies performing services regarding Illinois insureds to keep all of their books, records, documents and any or all papers relating to business, performance, operations and affairs of the company within the state of Illinois was, as a matter of general policy, invalid and unenforceable.

  • Summary judgment on behalf of an insurer finding that a policy holder’s tender of a check returned for insufficient funds is not a payment and the policy, therefore, lapsed and the insurer was not required to send any further notices to the policy holder.

  • Summary judgment on behalf of an insurer finding that, based on the terms of a life insurance policy, if the insured dies while the policy is in default, the insurer was allowed to deduct the amount of premiums owed to bring the policy out of default, from the death benefit, see John Hancock Life Insurance Co. v. Katzman, et al., 2015 WL 3767296, 2015 U.S. Dist. LEXIS 78892 (S.D.N.Y. June 17, 2015).

  • Summary judgment for an insurer dismissing a claim for damages based on the policy holder’s purchase of a life insurance product that was purchased as part of a plan under Internal Revenue Code Section 419(e), based in part, that the insurer had no duty to the policy holder and the policy holder was unable to articulate any cognizable injury, see Nassar v. Madera et al., 2016 U.S. Dist. LEXIS 94219 (S.D.N.Y. July 19, 2016).
Partner
Email (212) 808-7811(212) 808-7811
Neil Merkl is a commercial lawyer, litigator and trial attorney with more than thirty years of experience in contract, commercial law and civil litigation. Neil represents innovative businesses wh...
Special Counsel
Email (212) 808-7843(212) 808-7843
Jaclyn Metzinger focuses her practice on commercial and complex civil litigation in both state and federal courts.  Her experience includes consumer class actions and false advertising claims,...
Senior Associate
Email (212) 808-7584(212) 808-7584
Sean Flanagan focuses his practice on all aspects of complex commercial litigation, mediation and arbitration for financial institutions; life insurance companies, corporate officers and directors ...
Associate
Email (212) 808-7637(212) 808-7637
Alaina Ingram is an associate in the firm’s New York office.  Her practice focuses on litigation. Prior to joining Kelley Drye, Alaina was a judicial law clerk to the Honorable Wil...

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