Terry Carter's family sues company refusing to issue $1M life insurance policy

COMPTON, LOS ANGELES (KABC) -- The family of Terry Carter, who authorities say was run over and killed by rap mogul Suge Knight, are now suing an insurance company that refuses to issue Carter's $1 million life insurance policy.

Carter, who died in January, left behind two daughters. The 55-year-old's family said he was paying for life insurance, but the issuing company said the policy is no longer good because of a lapsed payment.

"My dad worked for this policy. He paid on it for almost three decades out of his hard earned money," Nekaya Carter said.

He purchased the policy when Nekaya was a baby. The family's lawyer said a paper trail indicates that the lapsed payment was part of a miscommunication, and he had been fighting to get it reinstated.

"We're telling the insurance company that they need to follow California law when they do reinstatement applications and that they did not follow it," attorney Travis Corby said.

The Protective Life Corporation issued a statement to Eyewitness News saying, "Our privacy requirements prohibit us from commenting on individual policies; However, we make every effort to work with our customers whenever issues arise."

Carter was a real estate entrepreneur and founder of a record company. He grew up four blocks from where he died. As for Suge Knight's role in Carter's death, his daughters reserve judgement.

"It's a tremendous, horrible loss. I still think this is someone else's life," Crystal Carter said.