Robert H. Waldschmidt v. Reassure America Life Insurance Co., et al.

This appeal involves a question of law concerning the interpretation of Tenn. Code Ann. § 56-7-2303 (2008) certified by the United States Bankruptcy Court for the Middle District of Tennessee. The bankruptcy court has asked this Court to determine whether the issuer of a deceased debtor’s life insurance policy was exempted under Tenn. Code Ann. § 56-7-2303(d) from the statutory notice requirements for lapsed life insurance policies because the premium payments on the policy were being paid monthly. We hold that the plain language of Tenn. Code Ann. § 56-7-2303(d) exempts from the notice requirements in Tenn. Code Ann. § 56-7-2303(a) “any policies upon which premiums are payable monthly or at more frequent intervals.” Based on the undisputed facts, the premiums for the debtor’s life insurance policy were “payable monthly.” Therefore, the issuer of the policy was not required to give either the debtor or the trustee the notice required by Tenn. Code Ann. § 56-7-2303(a), and the policy lapsed in accordance with its terms before the debtor’s death.