After these representations, Li reportedly opted into a IUL policy through PacLife. information here is for reference only. document.getElementById( "ak_js_2" ).setAttribute( "value", ( new Date() ).getTime() ); document.getElementById( "ak_js_3" ).setAttribute( "value", ( new Date() ).getTime() ); document.getElementById( "ak_js_4" ).setAttribute( "value", ( new Date() ).getTime() ); Please note: Top Class Actions is not a settlement Transamerica Life Insurance Co. will pay $195 million to settle a class-action lawsuit alleging the company improperly increased the monthly charges on 70,000 universal life insurance. Regulators are not doing anything to stop the unfair practices, he warns. This awful IUL sales story proves my point. The crux of the complaint is both technical as well as addresses the way it was sold, according to Bobby Samuelson, editor at The Life Product Review. for informational purposes only. current list of Class Actions and Class Action Investigations, here. your claim status, claim form or questions about when payments are Published April 17, 2023 9:54AM. Are you kidding me? First you have to assume potential clients have a pot of money that could be used to fund an IUL policy for the sole purpose of borrowing from it tax-free in retirement. 2) I help them market (www.strategicmp.net for list of marketing tools) Class actions on "vanishing premium" sales practices reaped "huge jury verdicts, multi-million dollar class action settlements and changes that go to the very foundation of the life insurance industry." We're talking literally billions of dollars in aggregate settlements. Become a subscriber below! While its true that indexed universal life insurance offers a bigger upside than a traditional life policy in a good yearlike 2021 when the S&P index rose 26.9%and while it can protect against investment loss, the costs associated with an IUL can drain the policy of its value. The Class Representatives who suedand all of the Class Members like themare called Plaintiffs. You might be using an unsupported or outdated browser. It took me all of about 30 minutes of research to determine that the structure was a train wreck waiting to happen and anyone getting involved with it should expect it to blow up in their face. We'd love to hear from you, please enter your comments. such links, we may receive a commission, but it will not result in any additional charges to you. While not binding, this illustration serves as an educated guess as to what the policy will be worth in any given year. 30-2020-01153426-CU-BT-CXC, in the Superior Court of the State of California in and for the County of Orange. I suspect it's because we all want to believe there's a "magic pill" answer to the volatility of the stock market. Vazirani and Ron Shurts, a founder of Shurwest, are bitter rivals who have clashed in the past. Indexed Universal Life Insurance Lawsuits | ClassAction.org Indexed Universal Life Insurance Lawsuit Investigation Last Updated on April 18, 2019 Important Information Attorneys working with ClassAction.org are no longer investigating this matter. We work closely with class action and mass tort attorneys across the country and help with investigations into corporate wrongdoing. Even if a market index performs extremely well, not all of these gains will be translated into a policys interest rate. Consumers may be able to file an IUL lawsuit if their insurance provider misrepresented the policys performance with false marketing promises. For more than a decade, indexed universal life insurance (IUL) has been one of the life insurance industrys most profitable businesses. CHICAGO - Class action status has been granted in a lawsuit claiming the City of Chicago illegally issued millions of dollars in unlawful . On page 12 paragraph 60 it states that the Living Life IUL offered by LSW is far more expensive then other LSW IUL products. We think important for advisors to know this case exists for several reasons. No. A qualified IUL attorney can determine your eligibility for legal action. That is the same year she became a Pacific Life producer. Top Class Actionss website and social media posts use affiliate links. Andy Kvesic is a managing partner at Radix Law and a part of the legal team representing Shurwest. such links, we may receive a commission, but it will not result in any additional charges to you. It is a bit different than the amended complaint. Take a photo of a faulty item and add a brief description. Companies that use false marketing could be in violation of state or federal law, entitling consumers to damages and other relief. The answer to all of these very simple questions was NO! I do NOT like or trust most IMOs. A class action lawsuit, also known as a class action or representative suit, is a type of lawsuit where one of the parties is a group of people represented collectively by a member or members of that group. Pacific Life will respond aggressively I am sure as there is much at stake. Washington state regulators seek man facing felony insurance fraud charges, Wisconsin seeks policyholders of insolvent Time Insurance Co. products, Find out how you can submit Click Accept if you consent. New IUL premiums increased by 29% in the fourth. This field is for validation purposes and should be left unchanged. He said the class action status enables 90,000 motorists to possibly get their money back; a total of $20 million. New cases and investigations, settlement deadlines, and news straight to your inbox. Attorneys If you are considered eligible to be among the class of consumers described in the class action lawsuit investigation, you may eventually be able to participate in receiving any compensation the court may award. These cases were consolidated and put together in the class action lawsuit. It is unknown when the case will go before a judge. If an insurance company uses false marketing to overstate the benefits of IUL policies, consumers could make serious financial decisions without knowing the true risks of these policies. People will buy IUL policies based on a fictional future and hit a hard reality when they have to pay substantially more than they expected in order to keep the policies in-force. Pacific Life did not respond to repeated calls and emails. Did you or a family member purchase an Indexed Universal Life Policy (IUL) and are NOT receiving the returns or account value increases that were shown to you in marketing materials or sales illustrations? In 2020, a California woman took legal action by filing a class action lawsuit against Pacific Life Insurance Company. Many of the policies were sold during a period of high interest rates, which allowed insurers to offer attractive guaranteed minimum interest rates. Opposing attorneys representing the Ciofolettis and Stospal are forum shopping a proposed class action that was rejected by a Minnesota court, Kvesic said. The Ciofolettis and Stospal initially sued Minnesota Life, Shurwest and others in Minnesota District Court. The two companies appear to share the same address, phone number and employees, Minnesota Life noted in a lawsuit it filed against Shurwest in July 2021 in the U.S. District Court for the District of Minnesota. document.getElementById( "ak_js_2" ).setAttribute( "value", ( new Date() ).getTime() ); document.getElementById( "ak_js_3" ).setAttribute( "value", ( new Date() ).getTime() ); document.getElementById( "ak_js_4" ).setAttribute( "value", ( new Date() ).getTime() ); Please note: Top Class Actions is not a settlement The plaintiffs are represented by Bonnett Fairbourn Friedman & Balint, a Phoenix law firm specializing in life insurance sales practices. With the structure payments, you are actually increasing the premium that goes into the IUL! The insurance company manages and buys the options, rather than the policyholder, who expects to see additional gains in value while keeping the basic policy investment safe. Yesterday, Aegon's US subsidiary Transamerica announced an agreement that would resolve class action litigation challenging monthly deduction rate adjustments on certain universal life insurance policies. There is a class action lawsuit alleging just that in California. Policyholders who participate in the settlement will receive a monetary award either through credits to policy account values or in cash for policies no longer in force and protection from any additional increases in the monthly deduction rate for five years. When the interest rates are bound by the movement of the stock or bond market, this becomes an Indexed Universal Life, or IUL insurance policy. The move boosts data processing speed and establishes a modern infrastructure to build out the firm's vision for an all-in-one technology suite. The employee who is receiving $750 a month for the next several years could sell that payment stream for a lump sum. Recently, a class-action lawsuit was filed against Pacific Life regarding its popular and controversial PDX Index Universal Life (IUL) product. FIP products were notorious as early as 2015, when several state regulatory agencies investigated the FIP products and determined them to constitute illegal usurious loans, the lawsuit reads. John Hancock Life Insurance Co. settled a lawsuit related to UL insurance costs in July for $91.25 million. Should you use a premium deposit account at an insurance company? The plaintiffs say those concerns have been addressed in the new Arizona lawsuit. IF YOU KNOW A CLIENT OR FRIEND WHO GOT CAUGHT UP IN THIS STRUCTURE, Options allow the holder to buy or sell the underlying index at a certain price at a certain time, which can rise or fall rapidly. PLEASE EMAIL ME IMMEDIATELY TO SET UP A CALL. For one thing, after a few years the insurer may lower thecrediting cap,which is the maximum amount it allows the policyholder to earn on the policy when options do well, says Wealth Managements Roth. Dick Schiethart, senior spokesperson for Transamerica parent Aegon, said the company is satisfied with this settlement because it will make an end to the uncertainty for our customers.. ClassAction.org is a group of online professionals (designers, programmers and writers) with years of experience in the legal industry. If consumers were deceived into taking out a PDX life insurance policy from PacLife through the use of deceptive marketing materials, their legal rights may have been violated. 2023 InvestmentNews LLC. I asked simple questions like is there a bank or trust company (reputable one) that is managing the payments in this structure? A reputable trust company isnt being used. Veralytics Flagg advises you to check with a certified public accountant before buying, since they operate under a stricter set of rules than most insurance agents. How To Find The Cheapest Travel Insurance, Tips for Buying Life Insurance for the First Time, What To Expect In Life Insurance Medical Exam, How To Choose A Life Insurance Beneficiary. Agents could adjust their compensation to be significantly higher than the market-rate, which resulted in higher policy charges for clients and greater risk of downside loss. Its not good business to take advantage of people who are vulnerable! Consumers may not know about the intricacies of IUL policies, allowing PacLife to exploit their lack of knowledge. By now you may have heard about a class action lawsuit filed in Orange County last week against Pacific Life. We want to help people make smart financial decisions How? Consumers should avoid IUL because the insurers and agents who sell the product have no obligation to work in the consumers best interest. The IUL Class Action Lawsuit is Hong Li v. Pacific Life Insurance Company, et al., Case No. Indexed universal life policies are unique forms of life insurance which tie interest rates to a market index such as the S&P 500 or Nasdaq 100. Recently, a class-action lawsuit was filed against Pacific Life regarding its popular and controversial PDX Index Universal Life (IUL) product. Actions does not process claims and we cannot advise you on the Required fields are marked *. IUL policies have come under fire recently for being difficult to understand and unnecessarily complex. document.getElementById( "ak_js_5" ).setAttribute( "value", ( new Date() ).getTime() ); @2023 Top Class Actions. New IUL products featuring "multipliers" or "bonuses" prompted the IUL Illustration Subgroup to consider . 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