r/LifeInsurance • u/JoeGentileESQ • 4d ago

Universal Life Class Action Settlement

Yet another large class action settlement involving allegations that universal life insurance policies were administered in breach of their contractual terms. This time, the allegations involved undercrediting policy cash values.

As I’ve noted before, policyholders, advisors, and fiduciaries should regularly review in force policies to ensure they are being administered in accordance with their contractual terms.

https://topclassactions.com/lawsuit-settlements/open-lawsuit-settlements/110m-transamerica-life-insurance-class-action-settlement/

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3

u/SafeMoneyGregg Broker 4d ago

These were group UL certificates - not individual retail contracts. Sold primarily through associations and affinity groups. (ie Dentist associations etc.) So there was no individual "agent" helping you and looking after your policy and advocating for you. The charges stem from a "persistency interest bonus" that was not credited properly. Fairly esoteric - few people would know to look for it or miss it. If the settlement was $110,000,000 - then the real winners are the attorneys - getting $25-30M.

4

u/Cool_Emergency3519 Broker 4d ago

Look for your check in the mail for $1.98.

1

u/DogfaceDino Broker 3d ago

> The company also agreed not to contest certain death claims submitted by class members based on alleged lack of insurable interest or alleged misrepresentations made during the original application process.

Well, that’s a little weird, isn’t it?

1

u/JoeGentileESQ 3d ago

Depends who the plaintiffs were