Ramsey

I. Background

Mrs. Ramsey was married to Edward Ramsey II, with whom she had two children, Edward

Ramsey III and Kelly Ramsey. In 1998, Farmers issued a life insurance policy with a number ending in ‘4370U to Mr. Ramsey III, and a life insurance policy with a number ending in ‘6172U to Mr. Ramsey II. (Docket Entry No. 37 at 10–15). According to Mrs. Ramsey, she and her husband did not intend to pay premiums for their children’s life insurance policies once the children reached 18. They instead planned to allow Mr. Ramsey III’s policy to lapse by stopping the premium payments on that policy, ‘4370U, while continuing to make premium payments on Mr. Ramsey II’s policy, ‘6172U. However, beginning in 2002, the Ramseys stopped making premium payments on the father’s policy, ‘6172U. (Id. at 16). The ‘6172U policy for the father then lapsed due to the failure to pay premiums. The ‘4370U policy payments for the son, Edward Ramsey III, remained current and the policy remained effective. (Id.).

In May 2002, Farmers sent a letter to Mr. Ramsey II, the father, which was addressed to “Insured: Edward L. Ramsey II.” The letter explained that in order to reinstate the policy, which had…