A life insurer and monetary advisors are rejecting the argument that they owed a fiduciary responsibility to 2 cash-value life insurance coverage coverage patrons in New York state.
The coverage house owners, Andrew Mukamal, a stylist, and Leona Walton, a mannequin who makes use of the stage identify Binx, sued Guardian Life, John Hancock, two advisors and the advisors’ corporations over coverage purchases in a state courtroom in New York Metropolis in November 2023. Mukamal and Walton argued that the insurance policies have been unsuitable.
Guardian asserts in a memorandum that it had no particular relationship with Mukamal or Walton and that Mukamal and Walton ought to have canceled the insurance policies earlier if the insurance policies have been unsuitable.
Legal professionals for the advisors, John Kenyon Lang and Michael Blackwell, and the advisors’ corporations make related arguments in a separate pleading.
Representatives for Guardian, John Hancock, Mukamal and Walton declined to remark. Legal professionals for the advisors and the advisors’ corporations didn’t reply to a request for remark.
The insurance policies: Walton was single, childless and 23 in 2020. Mukamal, her pal, was single, childless and 33.
Walton purchased six life insurance policies, with $87,506 in annual premium funds, by way of the advisors in 2020 and 2021.
Walton referred Mukamal to her advisors. He purchased 4 insurance policies with $188,067 in annual premium funds in 2020 and 2021.