Steven Draeger v. Transamerica Life Insurance Company

I. INTRODUCTION AND BACKGROUND

Plaintiffs Steven Draeger and Dara Draeger (“plaintiffs”) filed this action against defendant Transamerica Life Insurance Company (“Transamerica”) in the Superior Court of the State of California for the County of Los Angeles on July 19, 2019. Dkt. 1. Plaintiffs subsequently filed a first amended complaint on November 12, 2019. Dkt. 1-1, Exhibit J (“FAC”). On December 11, 2019, Transamerica removed this action to the United States District Court for the Central District of California. Dkt. 1. Plaintiffs allege that on January 23, 2003, Transamerica’s predecessor issued a universal life insurance policy (“the Policy”), with a face amount of $1,500,000.00, on behalf of insured Clarice M. Lacey (“Lacey”). FAC § 6. In February 2006, plaintiffs “purchased the Policy from its then-owner for approximately $430,000.00.” Id. 7. According to plaintiffs, “Transamerica changed the registered Policy ownership to [ plaintiffs’ names in [ April 2006] and [Transamerica] changed the beneficiary designation at that time as well.” Id. Plaintiffs further contend that at the time they acquired the Policy, plaintiffs…