text: Against this backdrop, who wouldn't want to protect their family by having a low-cost "blanket" accident insurance policy?1 For some, the lump sum represented more money than they would earn in an entire lifetime.
  Accidents happen all the time. They can bring financial disaster. Families need to be protected. Using some of this exact same language, National Union marketed and telemarketed "Accident Disability Plus"2 insurance to millions of Americans, nationwide. Working in concert with some of the country's biggest banks and financial institutions that were eager to monetize their customers' personal information, the "blanket accident insurance" policy was packaged as a "special offer" available exclusively to bank customers.
  the rule [presuming parties are familiar with contract terms] should not be strictly applied to insurance policies. It is a matter almost of common knowledge that a very small percentage of policyholders are actually cognizant of the provisions of their policies.... The insured usually confides implicitly in the agent securing the insurance, and it is only just and equitable that the company should be required to call specifically to the attention of the policyholder such provisions as the one before us.4
  California courts have long been disinclined to effectuate clauses of limitation of liability which are unclear, unexpected, inconspicuous or unconscionable. . . when the policy does not clearly define the application of exclusions to the basic coverage the insured could reasonably expect, courts will not relieve the insurer of liability on the basis of those exclusions.5
  As for National Union, its policy language is at best ambiguous. But since an insurance contract is a contract of adhesion, ambiguities shall be resolved in favor of the non-drafting party or consumer.6 As a result, the policy language should be reformed to adhere to an insured's reasonable expectations of coverage.
  The regulators did not like what they saw.7 First, before the investigation was even completed, National Union entered into a consent order in which the company agreed to shut down the entire marketing campaign. No longer could National Union and its banking partners package accidental double dismemberment, total blindness and paralysis coverage under the banner of accidental blanket permanent disability coverage. The marketing and sale of these National Union policies has not resumed since. Previously sold policies are still in force, however, leaving many insureds with coverage they would never have purchased or desired.
  Katie Spielman practices at The DL Law Group, a San-Francisco firm specializing in insurance bad faith and ERISA litigation. The firm litigates all aspects of insurance law, but primarily in the areas of disability, health care and long-term- care insurance, and on both individual claims and class actions. Katie regularly litigates cases against Unum Group and its many subsidiaries.