Massachusetts Mutual Life Insurance Company v. Hamar

On September 14, 2021, Massachusetts Mutual Life Insurance Company (“MassMutual” or “Plaintiff”), represented by Katherine Leigh Villanueva of Faegre Drinker Biddle & Reath LLP, filed an iInsurance lawsuit against Laszlo Hamar (“Defendant”). Plaintiff filed suit seeking declaratory relief along with damages, prejudgment and post judgment interest, and costs of suit for Defendant’s alleged practice to make Plaintiff act upon his knowingly and intentionally made material misstatements of fact and failure to accurately, honestly, and/or truthfully answer and disclose material information on the application for the policies. This case was filed in the U.S. District Court in the Eastern District of New York. 

In the complaint, Plaintiff alleged that, “In September 2017, August 2018, and September 2018, MassMutual issued four life insurance policies, each with a waiver of premium rider to Defendant. The waiver of premium rider obviates the requirement that Defendant pay a premium on his life insurance policy in the event of total disability – i.e., in the event that a sickness or injury rendered Defendant unable to perform the main duties of his occupation as a New York Police Officer.”

Plaintiff further alleged that, “After Defendant submitted a claim for waived premiums under the policies, MassMutual discovered purposeful, fraudulent, and material misrepresentations in the application for the policies. Specifically, MassMutual discovered that Defendant purposefully failed to disclose, inter alia, that he was treated for injuries to his shoulder, back, neck, head and diagnosed with head trauma with post concussive syndrome, vestibular dysfunction, dizziness, blurry vision, headaches and other injures, approximately four years before he completed the application for the policies.”

Plaintiff also alleged that, “Had Defendant provided complete and accurate responses to the application questions, MassMutual would not have approved the issuance of the waiver of premium riders that accompany the life insurance policies. In light of Defendant’s material misrepresentations, MassMutual seeks a determination from the Court that the Waiver of Premium Riders are void and properly rescinded.”

The only claim for relief laid down by Plaintiff is for the declaratory judgment, wherein, Plaintiff alleged that, Defendant knowingly and intentionally made material misstatements of fact and otherwise failed to accurately, honestly, and/or truthfully answer and disclose material information on the application for the policies. Allegedly, had MassMutual known of Defendant’s misstatements, misrepresentations, and omissions at the time of application, it would not have issued the polices. Allegedly due to Defendant’s fraudulent, purposeful, and material misrepresentations on the application, Defendant is not entitled to the Policies’ Waiver of Premium Riders. Instead, the policies are void ab initio and properly rescinded, and no benefits are payable thereunder.

In its prayer for relief, Plaintiff requested the court to declare that the Waiver of Premium Riders are rescinded, that no insurance under the policies ever took effect and the policies are void ab initio, and that benefits are not payable under the policies. Plaintiff further requested for awarding damages, prejudgment interest, post judgment interest, costs of suit, reasonable attorneys’ fees, and such other relief as the court deems equitable and just.

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