Verdict Reinforces California Insurance Protections for Families and Policyholders Statewide
SAN DIEGO, CA – A federal jury has returned a verdict in favor of Michelle L. Moriarty, finding that American General Life Insurance Company (AGLIC) wrongfully allowed her late husband’s life insurance policy to lapse after violating key California Insurance Code protections. The verdict followed a trial before the Honorable Jinsook Ohta in the United States District Court for the Southern District of California and establishes that AGLIC’s failures caused the loss of coverage relied upon by the Moriarty family. As a result of the verdict, Mrs. Moriarty recovered the full $1 million policy limits, along with prejudgment interest.
The case was brought by Singleton Schreiber LLP on behalf of Mrs. Moriarty and centered on AGLIC’s failure to comply with California Insurance Code requirements designed to protect policyholders from losing life insurance coverage due to missed payments, particularly during times of illness or incapacity.
“This verdict is about accountability,” said Michelle Meyers, partner at Singleton Schreiber LLP and lead counsel in the case. “For the Moriarty family, it brings a measure of justice after years of being wrongfully denied the benefits Heron Moriarty worked to provide for his wife and children. For Californians, it sends a clear message that insurance companies must follow the consumer protection laws designed to keep families from losing coverage when they are most vulnerable.”
In September 2012, Heron D. Moriarty purchased a $1 million term life insurance policy to protect his wife and three children. He paid his premiums faithfully for nearly four years. In March 2016, a single monthly payment was returned unpaid while Mr. Moriarty was incapacitated. Despite California law requiring a 60-day grace period, 30-day written notice prior to termination, and the right to designate a third party to receive notice of a missed premium, AGLIC terminated the policy without providing these mandatory protections.
Mr. Moriarty died unexpectedly on May 31, 2016. When Mrs. Moriarty submitted a claim for benefits, AGLIC denied payment, asserting that the policy had lapsed. The jury rejected that position, finding that AGLIC failed to comply with California’s insurance laws and wrongfully denied coverage.
The verdict carries significant implications for California policyholders, particularly those with policies issued before January 1, 2013, and underscores the enforceability of statutory safeguards intended to prevent families from losing life insurance coverage due to missed payments during vulnerable periods.
Singleton Schreiber is a client-centered law firm, focusing on mass torts/multi-district litigation, fire litigation, personal injury/wrongful death, civil rights, environmental law, insurance bad faith, tribal law, and sex abuse/trafficking.
Home to the nation’s largest fire litigation practice, the firm has represented over 30,000 wildfire and explosion victims caused by utilities, government negligence, railroads, and corporate misconduct. Its nationally recognized team has played a leading role in high-profile cases including the 2025 Eaton Fire, 2025 Moss Landing Battery Fire, 2025 Esparto Fireworks Explosion, 2023 Maui Fires, and is also actively litigating wildfire cases throughout New Mexico, Colorado, Texas, Oregon, and Washington.
They are also pursuing groundbreaking litigation against Tesla for misrepresenting their autopilot system, which recently resulted in a historic verdict. Additionally, the firm advocates for survivors of abuse involving hotel chains in California and Washington.
With deep experience in complex claims, the firm is committed to helping individuals, families, and communities recover and rebuild.
