The Tenth Circuit of the United States Court of Appeals has upheld a lower court’s ruling that New York Life Insurance and Annuity Company (NYLIAC) did not commit fraud and misrepresentation, breach of contract, unjust enrichment and recission against Irving H. Blumenthal.
In June of 1999, Mr. Blumenthal purchased a universal life insurance policy that provided a death benefit of $1 million. The policy had a maturity date of June 12, 2032 and called for monthly premium payments of $4,420.50. However, the premium payments were not sufficient enough to keep the policy in force through the maturity date. Without increased monthly premium payments, the policy’s cash value and death benefit would lapse at a time determined by credited interest rates and costs.