21-yr Life Policy Surrender

[donmar]

Applied for a life insurance policy in 1976 with automatic premium loan. Policy paid by deductions from checking account in husband's name. Divorce in 1978. Ex-husband continued paying premium through checking account until 1984 when he moved from state. I had moved from state in 1981 so mail to my address (policyholder) in 1984 for failure to pay premium was returned to insurance company. Declared "lost policyholder" shortly after. Company located me early this year through a locator service after 1099-R was returned. Then I received the 1099-R. The dividends use to pay this policy since 1984 are now taxable income for me!

Does the insurance company have a responsibility to locate the policyholder in this case--they certainly were easily able to locate me with the 1099-R?

 

[ALawyer]

It has no more obligation to locate you than you have to keep it apprised of your address changes....

 

[donmar]

Wasn't clear enough. Notified insurance agent of divorce and new address in 1978 and cancelled policy with all information to be sent to new address. Joint bank account where premiums were deducted for this policy was closed with divorce. Apparently, the life insurance company collected the premiums from ???'s account (bank still digging through records) from 1978 to 1984. (I had moved from state in 1981.) By this time, I could not be located at the address they had on file in 1978.