POLICY WAS NO LONGER CONVERTIBLE
E.H. purchased a policy back in 1988, which provided, in pertinent part, "CONVERTIBLE AND ANNUALLY RENEWABLE," and "RENEWABLE TO AGE 70." A rider, which addressed the "Right to Change Plan," provided that the term insurance may be "exchanged ... for a new policy ... not later than the policy anniversary nearest to the Insured's 65th birthday."
As he reached his 68th birthday, E.H. asked that the policy be converted to whole life insurance, and that request was denied. After a lawsuit was filed with the Suffolk County Supreme Court, the insurance company requested, and was granted, summary judgment -- pretrial relief in its favor -- and an appeal then followed.
The Appellate Division, Second Department, examined the policy’s “plain and ordinary meaning,” and concluded that while it was renewable up to age 70, it unequivocally required that any conversion request be made before E.H.’s 65th birthday. And since his request was untimely, the AD2 affirmed the underlying determination in the insurer’s favor.
Clearly, there's no life left to this case ....
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DECISION