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Insurance
Bad Faith
Fraud

Norman Jensen v. Transport Life Insurance Company

Published: Oct. 23, 1993 | Result Date: Oct. 1, 1993 | Filing Date: Jan. 1, 1900 |

Case number: BC003987 –  $25,100,000

Judge

Ernest G. Williams

Court

L.A. Superior Central


Attorneys

Plaintiff

Randy D. Curry
(Law Office of Randy D. Curry)


Defendant

Richard Bone

Thomas M. Herlihy


Experts

Plaintiff

Stephen D. Prater
(technical)

Facts

In 1988, Plaintiff, a 50-year-old musician, purchased what he believed was a major medical/hospital policy from Defendant Transport Life Insurance Company. These policies were sold through the use of brochures and insurance agents that were hired by the Keith Wood Agency. The Keith Wood Agency had an exclusive arrangement with Transport Life Insurance Company to sell these health policies. Plaintiff came down with non-Hodgkins lymphoma, which is a form of cancer, and had to undergo radiation, chemotherapy, and hospitalization. His total bills were approximately $47,500. Transport Life Insurance Company paid nothing on the radiation and chemotherapy bills, nothing on the doctor bills, and only $3,420 of a $24,000 hospital bill. Plaintiff became distressed when he heard that the insurance company wasn't paying and attempted suicide on two occasions. His treatment was continued by Plaintiff's doctor who agreed to continue treating him for free. Plaintiff's cancer is now in remission.

Settlement Discussions

Plaintiff contends they demanded $1,250,000 (withdrawn on day before trial) and Defendant offered $250,000.

Other Information

Medical bills of over $40,000 were paid by Defendant after filing of lawsuit.

Deliberation

1 day

Poll

10-2

Length

2 weeks


#121867

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