Way worse than the UL lawsuits in the 90s. The IUL sales structure I will talk about in this newsletter I saw a few years ago. Some of Transamerica’s universal life insurance policies were payin… If Snyder signs off on the settlement, Transamerica would deposit the payments to existing policyholders’ current insurance accounts; owners of terminated policies will receive payment automatically by check. The structured payment company that was responsible for investing the money of clients and generating the payment streams needed to fund all the IUL policies is NO LONGER PAYING! This awful IUL sales story proves my point. No claim forms would be required, plaintiffs’ attorneys said. Consumer Action maintains this listing of notable class actions so that interested consumers can learn more, join a pending action or make a claim. The pending settlement’s account value credits are sufficient to refund 100% of the alleged past overcharges resulting from the challenged increases, according to Consumer Watchdog, which represented plaintiffs. Join a Free PacLife & Minnesota Life Lawsuit Investigation. Pacific Life Insurance is headquartered in Newport Beach, California and was founded in 1868. Way worse than the UL lawsuits in the 90s. In June 2014, a state court judge preliminarily approved a settlement to a class-action lawsuit against Fidelity & Life Guaranty Life Insurance, Co. Huge fall out and reckoning coming for the IUL industry in the near future. Minn Life, Shurwest, and Others Sued in Bad IUL Sales Structure. World Financial Group - Big Class-Action Lawsuit against Transamerica’s FFIUL? To read the class action complaint (a MUST read), click on the following link: http://advisorshare.com/pac-life-class-action-pdx-iul. Indexed Universal Life suddenly looked a lot more appealing once the risk of major market losses came front and center again. Submit a claim. The June 2018 lawsuit stemmed from allegations that the company withdrew from the accounts of policy holders who own TransUltra or TransSurvivor universal life policies. Minnesota Life is too big to bring down over this, but the damages from these lawsuits will be significant if liability is proved. What has happened is exactly what I predicted would happen when I saw the structure nearly two years ago. U.S. District Judge Christina Snyder scheduled a May 4 settlement approval hearing. Image source: Wikimedia Commons. In that IUL lawsuit, our client was also not told about the significant difference between the guaranteed and non-guaranteed aspects of their policy illustration. What part of this structure looks like it is one that will protect our client’s investments? They apparently don’t have the money! Unfortunately, in 2019 the PDX policy was the #1 selling IUL. Class Action Lawsuit regarding IUL multipliers. Chen joined Premier Financial Alliance in 2017 and Gonzales in late 2017 or early 2018. So the sales were mainly to older clients and some who used money from IRAs (this alone is a problem since older people should not be buying life insurance as a retirement tool and you should NEVER take money out of an IRA or qualified plan to fund an IUL for tax-free borrowing (it’s a mathematical loser)). “The increased charges that Transamerica applied to these universal life insurance policies caused tremendous surprise and stress for the affected policyholders, many of whom are now senior citizens, and some of whom are quite elderly and on fixed incomes,” Friedman said. If its like this why even take the risk selling IUL and be involved in a potential class action lawsuit? By Ryan W. Neal 2 MINS Transamerica Life Insurance Co. will pay $195 million to settle a class-action lawsuit alleging the company improperly increased the … Open. In the IUL sales structure I’m covering in this newsletter, the payment streams were coming from Federal employees (from their pension payments). They were told that the guaranteed aspect would “never happen.” After over a year of litigation, we resolved the case for a return of every dollar paid in premiums on the policy. World Financial Group - Big Class-Action Lawsuit against Transamerica’s FFIUL? SiriusXM Class Action Settlement A class action lawsuit filed against SiriusXM has been resolved with a $96 million settlement. >> Want to read more stories like this? Class Action and Other Lawsuits 2) I help them market (www.strategicmp.net for list of marketing tools) You can sort the listing three ways—actions or settlements that are (1) open to claims, (2) pending or (3) closed—or … The June 25th class-action lawsuit was filed by Plaintiffs Rui Chen and Wenjian Gozales in California. Sales of indexed universal life insurance have been booming, but buyers may have been sold on policy projections that won't come true. The complaint alleges that, among other things, the company deceptively sold its Indexed Universal Life (“IUL”) policies by failing to disclose the high costs associated with these policies. 7. An IUL class action lawsuit investigation is underway to probe into allegations that people who purchased Indexed Universal Life (IUL) insurance policies were misled into expecting unrealistic rates of return that comes after insurance companies presented used fabricated and false illustrations in marketing literature and sales material. 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