Moriarty

I. BACKGROUND

26 On September 20, 2012, American General issued Heron D. Moriarty a $1 27 million term life insurance policy. (Def’s MSJ, Exh. 3.) Heron D. Moriarty was the 28 named insured and owner of the policy. (Id. at 35.) Plaintiff Michelle Moriarty, Heron D. Moriarty’s spouse, was the named primary beneficiary of the policy. (Id. at 36.) On January 1, 2013, certain California Insurance Code provisions went into effect, guaranteeing the following: a 60-day grace period after nonpayment of a premium, Cal. Ins. Code § 10113.71(a), the right to designate someone to receive notices of lapsed payments, id. § 10113.72(a)–(b), and a 30-day notice of a lapsed payment to both the policy owner and aforementioned designee before the policy may be terminated for nonpayment, id. §§ 10113.71(b), 10113.72(c). Between September 2012 and February 2016, Heron D. Moriarty paid the policy’s monthly premiums by automatic draft from his bank account. (See Def’s MSJ, Exhs. 17, 18.) On March 20, 2016, American General attempted to draft a monthly premium payment that was due on that date. (Def’s MSJ, Exh. 17 at 992.) On March 24, 2016, the…