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NORTHERN CALIFORNIA RECORD

Saturday, November 23, 2024

Pruco Life Insurance Co. accused of breach of contract regarding life insurance policy

Insurance 07

SAN JOSE – A widow has filed suit against an insurer over a life insurance policy owned by her late husband.

Mojgan Gholamnejad filed a complaint on Oct. 25 in the U.S. District Court for the Northern District of California, San Jose Division against Pruco Life Insurance Co. alleging that the insurer breached its duty of good faith and fair dealing.

According to the complaint, the plaintiff alleges that on May 9, 2012, her husband, Takashi Motose, purchased an individual term life insurance policy from the defendant with plaintiff as beneficiary and subsequently executed a request for collateral assignment of the policy to Business Loan Center as security on a Small Business Administration loan he and his wife assumed. On Nov. 14, 2015, the suit states Motose died of asphyxia, however, when plaintiff submitted a written claim for benefits under the policy on July 13, 2016, defendant informed plaintiff that the policy lapsed and has no cash value. Plaintiff alleges she has been deprived of timely payment of the sums due her, and has suffered anxiety, worry, mental and emotional distress, and other incidental damages and expenses.

The plaintiff holds Pruco Life Insurance Co. responsible because the defendant allegedly breached its contractual duties under the Policy when it attempted to provide notice to Motose of impending termination of his policy less than 30 days prior to the date of termination and by misstating the date of termination of the grace period, and refused to communicate with the beneficiaries of the insured.

The plaintiff requests a trial by jury and seeks judgment against defendant, declare policy as in force, benefits due in the amount of $700,000, interest, damages, attorneys' fees and further relief as the court may deem just. She is represented by Charles B. Perkins and Susan D. Pelmulder of Rose Perkins Pelmulder in Los Gatos.

U.S. District Court for the Northern District of California, San Jose Division Case number 16-cv-6151

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