Insurance Premiums – Contract Claim

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7^th Circuit Court of Appeals

Case Name: Margery Newman v. Metropolitan Life Insurance Company

Case No.: 17-1844

Officials: WOOD, Chief Judge, and EASTERBROOK and ROVNER, Circuit Judges.

Focus: Insurance Premiums – Contract Claim

At age 56, Margery Newman purchased a long-term care insurance plan from the Metropolitan Life Insurance Company (“MetLife”). She opted for one of MetLife’s non-standard options for paying her insurance premiums; MetLife called the method she selected “Reduced-Pay at 65.” When Newman was 67 years old, she was startled to discover that MetLife that year more than doubled her insurance premium. MetLife insists that the increase is consistent with Newman’s insurance policy, including its Reduced-Pay- at-65 feature. Newman was unpersuaded and brought this action to vindicate her position. The district court dismissed for failure to state a claim. We conclude, however, that Newman is entitled to relief on her contract claim and that dismissal of the remaining claims was premature. We therefore reverse and remand for further proceedings.

Reversed and Remanded

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Attorney Derek A. Hawkins is the managing partner at Hawkins Law Offices LLC, where he heads up the firm’s startup law practice. He specializes in business formation, corporate governance, intellectual property protection, private equity and venture capital funding and mergers & acquisitions. Check out the website at www.hawkins-lawoffices.com or contact them at 262-737-8825.