Billie J. Preaseau v. The Prudential Insurance Company of America

Billie Preaseau, plaintiff below, appeals from the district court’s denial of her motion to remand to state court her action removed to federal court at the instance of Prudential Insurance Company of America (Prudential), defendant below. Preaseau also appeals from the federal district court’s granting of Prudential’s motion for summary judgment. We affirm.

I. Statement of the Case

On January 1, 1970, Prudential issued two group insurance policies to Amelco Corporation. These policies were a “Term Life Policy” which provided life insurance coverage in the amount of $30,000, and a “Personal Accident Policy” which provided for, among other benefits, accidental death benefit in the amount of $100,000. As an employee of a subsidiary of Amelco Corporation, Jesse Preaseau received a certificate indicating his status as an insured under the Amelco group policies. Jesse Preaseau designated his wife, appellant Billie Preaseau, as his beneficiary.

On June 1,1973, Jesse Preaseau voluntarily terminated his employment with Amelco. Except for the notice in his certificate, he was not given notice of his right to convert his group life insurance coverage to individual coverage. He did not at…