Mortgage Life Insurance. Shouldn't the loan get paid?

[walin]

Our mother recently passed away in California, at the age of 74. She purchased a mobile home 12 years ago. The mobile home is located on my sisters property. My sister also originally co-signed on my mother's loan. The "death desk" lady at the credit union copied the insurance policy that stated it was good for a total of 180 months (15 yrs) (with our mother's signature, and witness). We were then contacted stating that the mortgage life insurance company never issue a policy over 10 years and that an addendum should have been sent to our mother stating these revisions. The credit union also stated that if there was an addendum it would be in the file (there isn't one). Also we were advised that this same insurance company destroys their files after 10 years. A local attorney that we went to is advising for my sister to file bankruptcy, since the insurance company and the credit union are too large to go up against. We were advised to find "the original insurance contract", we did and it computes that my mother paid for 15.95 years for this insurance.

 

[ALawyer]

This sounds like OUTRAGEOUS conduct on the part of the insurance company. If there was a policy and there are any records that it was for 15 years you'll collect. If the agent fouled up, she'd be responsible. And NO insurance company destroys all records after 10 years -- policies last for 50 and more years.

CONTACT the state insurance department. Read the freeadvice section on bad faith. Get a lawyer who knows insurance and have the lawyer handle it. GENERALLY the bigger they are the more reputable theinsurance companies are.