Bgi Life Inc. v. American General Life Insurance

MEMORANDUM

Plaintiff-Appellant BGI Life, Inc. (“BGI”) appeals the district court’s grant of summary judgment to American General Life Insurance Company (“AG”) on BGI’s action alleging, among other things, breach of contract and breach of the covenant of good faith and fair dealing stemming from AG’s refusal to reinstate a BGI-owned life insurance policy (“the Policy”) held by Sameha Rajab. We have jurisdiction under 28 U.S.C. § 1291 . We affirm the district court on all claims and theories except one: the district court did not address BGI’s argument that AG breached the contract when BGI did not receive a contractually-required notice that the Policy was in its grace period and would lapse upon continued non-payment of premiums. We vacate and remand summary judgment on that point alone, and we retain jurisdiction over any further appeal.

I

The Policy lapsed for non-payment of premiums in February 2009. AG initially denied BGI’s application for reinstatement in light of Rajab’s “health history and the admitted fact she had not followed-up with a physician since March 2006,” but offered to reconsider its decision if given further information. AG formally declined to reinstate…