Hi,(posted 8033 days ago)The following is based on my own experiance with Sun Alliance (I also had a policy with them in the late Eighties).
If the policy was "assigned" to the lender, and if you haven't kept up your monthly payments, then the lender has the right under it's "power of sale" to request the proceeds of the policy from the insurance company. In such cases the lender has the original policy and the borrower only has a copy of the policy.
The proceeds must be used to pay off any arrears on the mortgage account or to reduce the balance of the account.
If the lender has denied receiving the proceeds, then you must do two things. Request a photocopy of the cheque made out to your lender from Sun Alliance, also ask for a copy of the "discharge" of the policy and all other correspondence relating to it between Sun Alliance and your lender. - they WILL have copies, I guarantee it. Also ask your lender for a list of transactions for your mortgage account for the periods before and after repossession - you need these to verify where the money has gone/or perhaps hasn't gone as the case may be.
They will probably resist, and may even ask you to pay for them, but be very persistant.
I write this assuming you have a completion statement from your lender/chaser and there are no figures on it relating to endowment policies.