Jefferson County doctor says insurer wrongfully demanding extra money

A Jefferson County doctor claims his life insurance company is wrongly demanding additional money from him to keep his policy active.

Henderson Supplemental Trust, Paul D. Henderson, John A. Henderson IV and John A. Henderson III filed a lawsuit Sept. 18 in Jefferson County District Court against Professional Underwriters, Johnny Gore, David Hood as administrator of the estate of Lonnie Hood Jr. and Reassure America.

In their complaint, the plaintiffs allege Lonnie Hood Jr., who worked for Professional Underwriters, sold John A. Henderson III a life insurance policy worth $125,000 with Southwestern Life Insurance Co.

“The policy was paid for by applying the transfer value from an existing Southwestern policy, which had a value of $39,170.06, together with the transfer value from an existing Equitable Life policy, which had a value of $16,342.92,” the suit states.

“From the total sum of $55,512.98, the defendants subtracted an existing loan of $28,881.04, leaving a balance of $26,631.86. Of that amount, the defendants took $25,202 to pay a single premium that would provide Dr. Henderson III with a paid-up policy for the rest of his life.”

However, during the summer, Reassure, which acquired Southwestern, sent the plaintiffs a letter denying deductions and saying that the plaintiffs would be forced to make a $2,022.57 payment and a $1,877.50 payment to keep the policy in force, the complaint says.

“Plaintiff paid said amounts under protest, but demanded an explanation as to why a paid-up policy was no longer a paid-up policy,” the suit states.

However, they claim they have failed to receive a satisfactory answer.

In their complaint, the plaintiffs seek an unspecified judgment, plus interest, pre- and post-judgment interest, costs, attorney’s fees and other relief the court deems just.

Jon B. Burmeister of Moore Landrey in Beaumont will be representing them.

Judge Donald Floyd, 172nd District Court, has been assigned to the case.

Case No. E193-183