Lydia B. Anderson v. Occidental Life Insurance Co. Of California, a Corporation

Lydia Anderson appeals from a judgment dismissing her claim for negligent infliction of mental anguish by an insurance carrier. We affirm.

In February 1981, Anderson submitted Medicare claims to Occidental Life Insurance Company, a Medicare carrier by contract with the United States Department of Health and Human Services. In May 1981, Occidental mailed her a check in satisfaction of her claim. She never received the check. It was returned by the post office with the notation “deceased” on the envelope. Occidental reprogrammed its computer and addressed subsequent communications to the “deceased” or to her “estate.”

Despite letters from Anderson, her doctor, and her attorney attesting that she was alive and unhappy at being deemed deceased, Occidental did not correct its error until October 1981.

Anderson’s attorney prepared a damage claim for five months of anguish and sought to negotiate a settlement. When that failed, Anderson filed an action in Orange County Superior Court for violation of California Insurance Code § 790.03, intentional infliction of emotional distress, negligent infliction of emotional distress and negligence.

The United States government answered…