New York Life Can’t Duck Policyholder’s Interest Rate Suit

Law360, New York (May 22, 2012, 1:51 PM EDT) -- The New York Life Insurance Co. must face a putative class action alleging it breached contracts with policyholders by pushing them into accounts that offered lower interest rates than other options, a New York federal judge ruled Monday.

U.S. District Judge J. Paul Oetken denied New York Life’s Sept. 23 motion to dismiss claims by plaintiff Vaijanti M. Patel, a Georgia resident and the beneficiary of her late husband’s policy. Patel claimed she was defaulted into a continued-interest account checkbook that was not offered in the...
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