A federal district court in Pennsylvania, relying in large measure on an insurance company's audio recording of a telephone conversation with its insured, has ruled that the insured canceled her life insurance policy several months before her death.
The Case
In June 2005, Kathryn Williams took out a life insurance policy with Hartford Life and Accident Insurance Company through her account with Citizens Bank. To pay for this policy, quarterly premium payments of $8.25 began being deducted from Ms. Williams' Citizens Bank account on June 1, 2005.
Several years later, on February 18, 2011, Ms. Williams called and spoke to a representative at Hartford Life. During this phone call, Ms. Williams expressed a desire to cancel her policy.
Hartford Life confirmed Ms. Williams' cancelation with a follow-up letter dated February 19, 2011.
Hartford Life then canceled the policy effective March 1, 2011, and no payments were deducted from Ms. Williams' account for this policy after December 1, 2010.
On December 19, 2011, Ms. Williams died as the result of injuries suffered in a motor vehicle accident.
Michael C. Williams, the executor of Ms. Williams' estate, reported the loss to Hartford Life.
Hartford Life denied Mr. Williams' claim for the accidental death of Ms. Williams, and refused to pay Mr. Williams, citing her cancelation of the life insurance policy as its reason.
The insurer moved for summary judgment. In support, it offered an audio recording of a phone call between Ms. Williams and a customer contact representative at Hartford Life.
Mr. Williams conceded that, in this recording, Ms. Williams her canceled a policy with Hartford Life. He argued, however, that he believed she was canceling her auto insurance policy with Hartford Life and not her accidental death and dismemberment policy.
The District Court's Decision
The district court granted the motion.
In its decision, the district court ruled, after a "careful review of the audio recording," that the customer contact representative at Hartford Life had explained to Ms. Williams the policy that she sought to cancel.
The district court noted that, in the recording, the representative said to Ms. Williams: "Right now you have with Citizens Bank Mid-Atlantic accidental death and dismemberment insurance." Ms. Williams then affirmed that she did in fact have this policy.
The district court then pointed out that the Hartford Life representative continued to confirm the policy that Ms. Williams wished to cancel by reviewing the policy number, the coverage parameters, and the premiums. Again, the district court said, Ms. Williams was heard affirming that this information was correct, and that she wished to cancel the coverage.
The district court was not persuaded by Mr. Williams' argument that because Ms. Williams told the Hartford Life representative that she wanted to cancel her insurance because she would no longer be driving a vehicle, she had intended to cancel her auto insurance, not her accidental death and dismemberment insurance. Among other things, the district court pointed out that although Mr. Williams claimed that Hartford Life had deducted monthly payments from Ms. Williams' Citizens Bank account for her auto insurance, her bank statements showed no withdrawals for an auto insurance policy.
The district court then ruled that it was "clear" that Ms. Williams had canceled her accidental death and dismemberment insurance policy with Hartford Life nearly 10 months before she died. As such, it concluded, no contract existed between the parties at the time of her death.
The case is Williams v. Hartford Life and Accident Ins. Co., No. 17cv234 (M.D. Pa. Jan. 29, 2018). Attorneys involved include: For Michael C. Williams, Executor of the Estate of Kathryn M. Williams, a/k/a Kathryn Williams, deceased, Plaintiff: Joseph F. Walsh, LEAD ATTORNEY, Coury & Walsh, Scranton, PA. For Hartford Life and Accident Insurance Company, Defendant: Brian P. Downey, Simone L Delerme, LEAD ATTORNEYS, Pepper Hamilton LLP, Harrisburg, PA.