KROETZ v. JOHN HANCOCK LIFE INSURANCE COMPANY

Kroetz v. John Hancock Life Insurance Company (U.S.A.) 2:20-cv-2117 (D. CA 2017) was filed in 2017 and is pending in the United States District Court for the Central District of California.

The plaintiff, Silvina Kroetz, claims that the defendant, John Hancock Life Insurance Company (U.S.A.) (“John Hancock”), failed to provide to life insurance policy holders certain notices required by the California Insurance Code. As a result, on behalf of herself and others that are similarly situated, plaintiff contends that John Hancock is required to honor life insurance policies that were improperly terminated prior to the appropriate notices being provided. 

More specifically, California Insurance Code sections 10113.71 and 10113.72 were designed to protect against life insurance policies from lapsing and went into effect on January 1, 2013. Section 10113.72 requires life insurance companies to give their policyholders an opportunity to designate at least one additional person to receive notice of lapse or termination of a policy for non-payment of a premium (“Offer to Designate Notice”). 

The lawsuit claims John Hancock failed to comply with the Offer to Designate Notice for life insurance policies that were issued or delivered prior to January 1, 2013.  We understand that John Hancock did send out these notice for new life insurance policies that went into effect after January 1, 2013.  Because of these alleged violations, the lawsuit claims John Hancock breached its contract under life insurance policies issued or delivered prior to January 1, 2013, by not giving proper notice to policyholders, and that therefore those policies did not terminate and are still in effect. The lawsuit also claims that John Hancock’s breach of contract resulted in a denial of payment of benefits to beneficiaries who would have had claims for benefits under such policies. 

As damages for John Hancock’s alleged violation of California law, the lawsuit seeks payment of full life insurance policy benefits due, pre-judgment interest, and other relief. The lawsuit also alleges John Hancock acted in bad faith under the applicable California laws. 

In a class action, one or more individuals or entities, called Class Representatives (in this case, Mrs. Kroetz), sued on behalf of others who have similar claims. All the other individuals or entities who have similar claims are putative “class members.” The motion for class certification has not yet been filed but is expected to be submitted later this year. 

The defendant is John Hancock Life Insurance Company (U.S.A.).

If you are the beneficiary of a life insurance policy that was issued by John Hancock prior to January 1, 2013 and  the policy lapsed, it is possible you are a member of the proposed class.

The plaintiff is represented by three law firms with extensive experience in insurance matters and complex litigation. They are:  

                                                                                                               Joseph M. Vanek 

                                                                                                               John P. Bjork  

                                                                                                               SPERLING & SLATER, P.C. 

                                                                                                               55 W. Monroe Street, Suite 3200 

                                                                                                               Chicago, IL 60603  

                                                                                                               Christopher Pitoun

                                                                                                               HAGENS BERMAN SOBOL SHAPIRO LLP 

                                                                                                               301 North Lake Avenue, Suite 920  

                                                                                                               Pasadena, CA 91101  

                                                                                                               David S. Klevatt  

                                                                                                               KLEVATT & ASSOCIATES, LLC 

                                                                                                               77 West Wacker Drive, Suite 4500 

                                                                                                               Chicago, IL 60601