Jule Rousseau Quoted in Law360
On Friday, June 8, the Second Circuit ruled that Lincoln Benefit Life Co. cannot void a nearly $6.7 million life insurance policy that was obtained through fraud. This decision held that New York law bars Lincoln’s arguments because it waited too long to challenge the policy’s validity.
Lincoln alleged that the policy, which insures the life of a woman named Gabriela Fischer, was procured through fraudulent means. However, the current owner and beneficiary of the Fischer policy, AEI life LLC, said Lincoln’s arguments were foreclosed because the insurer didn’t lodge its challenge within the applicable two-year “contestability period” after the policy was issues.
In regards to the Second Circuit’s ruling, Jule said, “Lincoln has attempted to game the system by using the conformity provision to seek the application of New Jersey law to these policies, but the Second Circuit said they cannot do that. Therefore, my client can rely on the fact that this policy is governed by New York law and cannot be challenged after two years.”
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