Legislators to introduce Blakely-inspired bill

The struggle of the late political consultant Tom Blakely’s widow to secure payment from the life insurance policy her husband signed just days before he died may lead to legislation in New Jersey. 

Last month, four state Senators wrote a letter to TransAmerica Life Insurance Corp. CEO Patrick S. Baird inviting him or a representative of the company to meet with them over legislation they plan to propose next month that would change the way life insurance companies operate in New Jersey.

TransAmerica has been assailed by prominent New Jersey Republicans ever since it challenged the validity of Blakely’s second policy with the company.  Blakely was a co-founder of Jamestown Associates, a top Republican consulting firm, and died in March after collapsing during a 5K race in Bordentown. 

Blakley signed the papers for his policy shortly before his death, but the company also sent out a “Statement of Good Health” for Blakely to sign afterwards.  By the time that arrived in the mail, according to an attorney for Blakely’s widow, he wa dead.                                         

The senators who signed last month’s letter were Joe Kyrillos (R-Middletown), Kevin O’Toole (R-Cedar Grove), Diane Allen (R-Burlington) and Ray Lesniak (D-Elizabeth). 

According to the letter, the legislation would hold insurance companies that do business by direct mail– the type of policy Blakely had – that New Jersey already has for “field issued” policies, which are sold in person by a representative.  It will also “require all life insurers doing business in the State of New Jersey to have an in-state agent make contact with an insured before a policy can be delivered through the mail or the internet. 

“As you may know, these bills were prompted by the case of Tom Blakely.  Transamerica denied the claim of Mr. Blakely’s family earlier this year, even though a life insurance policy had been delivered to Mr. Blakely by mail. As we have reached out to you we would likewise afford Mrs. Blakely the opportunity to testify on this legislation,” read the letter.  “We are committed to ensuring every New Jersey family is treated honestly, fairly and with dignity.  We believe, as recognized by existing federal and New Jersey State case law, that once an insurance contract is received by the insured, it is reasonable for the insured to assume it is enforceable.”