Legal theories of waiver and estoppel prevent life insurer from lapsing a $1 million policy.
NEW YORK, Sept. 22, 2025 /PRNewswire-PRWeb/ -- A New York Supreme Court judge has denied Security Mutual Life Insurance Company's motion to dismiss a lawsuit filed by Li Chung Pei regarding a $1 million life insurance policy on his late brother and business partner, renowned architect Chien Chung Pei. Mr. Pei seeks to recover the policy benefits following his brother's death from a heart attack on December 13, 2023.
Security Mutual argued that the policy had lapsed. Mr. Pei countered that the insurer's flawed and confusing billing practices left the policy in a state of "perpetual lapse." For example, the October 19, 2023 installment was first requested in a December 1, 2023 premium notice that was sent beyond the policy's 31-day grace period.
Justice Nicholas Moyne held that factual issues remain as to whether Security Mutual's conduct constituted waiver or estoppel, which could mean the policy was still in effect at the time of death.
Mr. Pei is represented by Eric Dinnocenzo, Esq. and Zhiping Louis Liu, Esq., both based in New York.
Media Contact
Eric Dinnocenzo, Law Offices of Eric Dinnocenzo, 1 212-933-1675, [email protected], www.dinnocenzolaw.com
SOURCE Law Offices of Eric Dinnocenzo
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