Genworth Life and Annuity, Genworth refused to pay $250K Life Insurance Claim after sick husband missed $159.90 payment on a 10 year policy.. Richmond, Virginia

I am writing regarding the loss of my late husbands $250,000 life insurance policy.  This policy was maintained through Genworth Life since 02/02/99.  Unfortunately, we received notification just three weeks prior to his April 4, 2010 death that his policy was canceled and ineligible for reinstatement.  The policy was terminated because he failed to make one quarterly payment for $159.90 prior to the grace period expiring in the fall of 2009.  At that point, before a payment would be accepted, the company requested a review of his health.  Unfortunately, he had major medical concerns at this juncture and was deemed uninsurable.   It is my belief, and I have medical records to substantiate, that his medical condition during the period that his payment would have been accepted was a major contributor in the missed payment.   
I have spent over a year appealing to Genworth to pay the claim based on the premise that an individual of sound mind would not intentionally let a long-term life insurance policy lapse when they were in such poor health. During that time the Agent who wrote the policy, Michael Zinis, Hawaii Congresswomen Mazie Hirono and The Hawaii Insurance Commissioner have also written letters on my behalf. A typical response which I received from Ms. Kimberly Hudson, Manager, Life & Annuity Claims Department, states that the information provided does not provide us with a basis to pay this claim under the terms of the contract.

I fully understand the terms of the contract.  However, based upon knowledge I have from several cases similar to my own, I am aware that claims are often given consideration and paid based on the circumstances rather than the terms of the contract.  I received a brochure from New York Life featuring testimony from Lynn Humphreys, the beneficiary of her husbands policy. Her case was very similar to my own.  The major difference being that her insurance company took the high road and considered her husbands illness as a factor in the cancellation of his policy, and ultimately paid her claim.  I have the brochure if you are interested.
I believe it is inherently wrong that someone should pay for something for the length of time that my husband paid for his life insurance, only to lose the entire benefit such a short period before it would be payable.  This becomes even more poignant in light of the fact that ill health played a major role in the ultimate outcome.  Wouldnt it stand to reason that the medical conditions causing him to be ineligible for reinstatement might also be a factor in missing the payment?   We are talking about the loss of $250,000 over a $159.90 payment, a payment that had been made for over 10 years.

It shouldnt be up to a company or individual to arbitrarily decide which claims will be paid. Life Insurance companies should be required to take in to consideration the health of the insured at the time the payment would have still been accepted before lapsing, the length of time the premium had been paid prior to being cancelled and the amount of time between the policy being cancelled and the death of the insured.   Insurance is something that is often relied on for survival.  The consequences to the beneficiary or living spouse, in a situation such as mine, are life changing and beyond devastating.