By: Shernoff Bidart Echeverria LLP
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AAA Unreasonably Rescinds Life Insurance Policy, Denying Benefits to Oxnard Widow, Lawsuit Alleges
Suit alleges AAA’s rescission practices violate California law
May 23, 2017 – Oxnard, CA – Cecilia Navarro lost her husband in December of 2014, and her grief was compounded when she learned she was the victim of a life insurance scheme created by AAA according to a lawsuit filed in Los Angeles Superior Court.
Ms. Navarro and her husband received a mailer from AAA, a well-known and trusted insurance company, which offered the couple an opportunity to obtain life insurance. They both filled out the questionnaire truthfully and provided all of the requested information. AAA then approved the $50,000 life insurance policy and immediately began collecting insurance premiums. However, Mr. Navarro died later that year a result of esophageal cancer. Rather than act in good faith towards Mrs. Navarro who was now grieving the loss of her husband, the company began an investigation that led to the policy being rescinded.
AAA made inaccurate claims regarding Mr. Navarro’s health in order to rescind the policy, suggesting his medical report contained conditions he failed to reveal to the insurer. When questioned under oath, Mr. Navarro’s physician Dr. John Barchilon stated there was nothing in Mr. Navarro’s medical record to support AAA’s claims. Any discrepancies AAA found could have been cleared up with a simple phone call.
“Cecilia’s case puts a spotlight on the abhorrent nature of AAA’s entire rescission scheme. It is clear from the testimony of two different AAA employees, that AAA engages in a corporate-wide pattern and practice of systematically rescinding life insurance policies to increase profits by depriving beneficiaries, such as Plaintiff Cecilia Navarro, of their benefits,” said attorney Travis Corby of Shernoff Bidart Echeverria LLP. “This case demonstrates that AAA does not follow California law regarding rescission practices.”
This AAA life insurance rescission lawsuit is: Cecilia Navarro v. AAA Life Insurance Company, Los Angeles Superior Court Case BC614718.
A copy of the lawsuit is available below: