I lost my life insurance due to non payment but payment was deducted from wages by employer. can I sue?

Question

the payment for my premium is automatically deducted from my wages and my employer is to send in the payment. I have lost my life insurance, pension and annuity riders because employer did not make payments. I want to be compensated for my loss, what are my rights by California Laws and what authorities do I report this to?

Answer 1

You haven't LOST anything yet.  You have no financial loss, until you try to cash those in, and can't.  If they replace them so that you don't LOSE anything, you have no loss, you have no suit.

Your place to complain to, is the CA Department of Labor.

You have no RIGHT to those types of benefits.  If it's under a group plan, the employer can cancel those benefits (unless you have an employment contract saying differently, in which case you have a breach of contract) with NO NOTICE. Then, you're entitled to a return of overpayment of premium - the amount they deducted for insurance premiums AFTER they cancelled.  UNEARNED premiums.

Answer 2

Contact the insurer.  Find out how long it has been since the premium was paid.  Offer to pay the premium yourself in arrears if the company will just allow the policy to continue.

If the company did not make your insurance and pension payments, they may not have been paying your federal and state taxes, social security and FICA taxes and your workers' compensation and unemployment taxes either.  

You should for certain check with the social security administration to make sure they were properly crediting your account for your wages and taxes paid.

Hopefully by now you've found a new employer and perhaps they have a group insurance plan you can get into.

Answer 3

Your employer has a fiduciary duty to submit the premiums they have deducted. You certainly have a case.

With that said most insurance carriers will allow you or the employer to pay the back premiums and reinstate your policies.

You should contact the CA Dept of Insurance and the Dept of Labor. http://www.insurance.ca.gov/ http://www.dir.ca.gov/

I would also talk to a lawyer

http://lawyers.findlaw.com/lawyer/practi...