Contact us today to see if you are entitled to join the Indexed Universal Life Policy (IUL) Class False Marketing lawsuit investigation. Get In Touch! He discussed the case last week at the American Council of Life Insurers' 2020 Annual Conference, conducted virtually. that reports on class action lawsuits, class action settlements, So, assuming clients with money pay premiums into an IUL, the question is what to do with that money as you wait to fund the IUL over a 5-, 7-, 10-year period. A reputable trust company isnt being used. 30-2020-01153426-CU-BT-CXC, in the Superior Court of the State of California in and for Orange County. 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 There were multiple lawsuits filed against the parties in more than one state. The lawsuit seeks class-action status welcoming the possibility that the attorneys working for the plaintiffs can prove that PacLife's behavior in marketing a certain indexed universal life insurance policy violates the law and hurts many people across the United States. your claim status, claim form or questions about when payments are 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! The primary issues are as follows: There is no telling that this complaint will be successful, but it may have a dramatic affect (win or lose) on our industry. However, this can result in some functions no longer being available. Class actions can be brought in federal court or state court. They are complex products sold with false promises and deceptive marketing, says Birny Birnbaum, executive director of the nonprofit Center for Economic Justice. We work closely with class action and mass tort attorneys across the country and help with investigations into corporate wrongdoing. By now you may have heard about a class action lawsuit filed in Orange County last week against Pacific Life. the content you have visited before, Advertising: Gather personally identifiable information such as name and location, Advertising: Use information for tailored advertising with third parties, Advertising: Allow you to connect to social sites, Advertising: Identify device you are using. Have you used the website or portal for Nelnet Servicing, a technology provider to Edfinancial and Oklahoma Student Loan Authority (OSLA)? This is rather unique to Transamerica, and helps your heirs plan your funeral. But money could be going into more esoteric ones like the Hang Seng, Gold and Emerging Markets. Are you kidding me? "Why that matters is that the allegations in the complaint are that the agent and the company didn't really explain what that performance factor was and how it worked. Fill out the form below to get in touch with a trusted attorney who can help you! A judge there denied class-action status in August 2021, ruling, in part, that plaintiffs did not prove the existence of a fiduciary duty on the part of the defendants. such links, we may receive a commission, but it will not result in any additional charges to you. In that book I have a chapter on IMOs. Consumers consider owning life insurance a vital part of financial wellness including aging Americans who want to ensure that their loved ones are provided for after they pass away. No. Universal life insurance is a type of life insurance product that provides cash value which is affected by the cost of insurance, or COI. COIs are the costs of underwriting and maintaining the policy and when the premiums that were paid exceeded the COI, the excess, together with interest, is credited to the policys cash value. content for publishing on our website. Your financial situation is unique and the products and services we review may not be right for your circumstances. Although IUL policies have the potential to have interest rates which vastly exceed those seen with other life insurance policies, there are also risks associated with these accounts. State court rules can differ. Vazirani and Ron Shurts, a founder of Shurwest, are bitter rivals who have clashed in the past. Remember that a life insurance policy may be in effect for 40 years or more and a lot can happen during that time. *This publication is based on information retrieved from The Life Product Review, "#239 | Filed: PacLife PDX Class Action Lawsuit", Published by Bobby Samuelson, Editor, on August 11, 2020. Owners of this product must be aware of exactly how it works, because, unlike certain other types of life insurance, IULs have a fluctuating component to them.. No part of this article may be reprinted without the expressed written consent from InsuranceNewsNet.com. 30-2020-01153426-CU-BT-CXC, in the Superior Court of the State of California in and for Orange County. The high charges do not provide the client with downside protection. Shurwest is also being sued by Minnesota Life. To get the best possible experience please use the latest version of Chrome, Firefox, Safari, or Microsoft Edge to view this website. Lets face itthere are a lot of different programs in the marketplace you can use to illustrate the value of IUL (Indexed Universal Life) insurance. Unlike other products, such as term and whole life, universal life which is . The ACLIsDolan saysthe size of the premium depends on the returns on the options in the policy. What you will read in this newsletter is a classic example of me helping an IMO and ultimately hundreds of agents from getting caught up in the lawsuits that are now flying. Were optimistic that the court is going to grant Shurwests motion to dismiss the complaint.. Click here to download an example output of an IUL vs. funding a 401(k) plan example for a 50 year old. FOX 32 Chicago. 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. IUL Insurers Face Class Action Lawsuits Why would anyone want to buy a policy that has as many pitfalls as Indexed Universal Life? Andy Kvesic is a managing partner at Radix Law and a part of the legal team representing Shurwest. The lawsuit was filed Aug. 6 in Orange County Superior Courts by plaintiffs Hong Li and Tailong Liu. Well, the agents who got caught up in what appears to be a scam, said no, no, no, no. ARE INDEXED UNIVERSAL LIFE INSURANCE (IUL) POLICIES GOOD? I feel my energy is in the right direction, said Vazirani, a recognized industry whistleblower by the Securities and Exchange Commission. Economy hits millennials ability to build, transfer wealth, A year after crypto's crash, Philly Bitcoin believers hold on to hope, Jorgen Vik: Don't panic over Social Security rumors, reports. Become a subscriber below! Aegon USA Inc., It is a bit different than the amended complaint. Eufy misled doorbell and camera users about how and where it stores recorded information. Its not a good idea to get involved in pyramid schemes! This article literally said NOTHING. On page 12 paragraph 60 it states that the Living Life IUL offered by LSW is far more expensive then other LSW IUL products. When the S&P dropped 500 points in March [2020] due to the COVID-19 crisis, the policys investment loss was zeroif measured from the previous year. As the name implies, it takes yearly interest income from the bonds and mortgages underlying the policy and invests that interest in options on one or more indices. All Rights Reserved. LSW Class Action Lawsuit - Advisor Share LSW Sued in IUL Pyramid Sales Scheme (Class Action Certified) This case has been out there for a few years and for whatever reason, the normal trade publications haven't really written about it. Policyholders from all states are invited to speak to these legal professionals, though attorneys are especially interested in speaking to Arizona, California, Florida, Illinois, Michigan, Minnesota, and New Jersey consumers. How much annuity income can I expect to receive? We want to help people make smart financial decisions How? Get breaking news, exclusive stories, and money- making insights straight into your inbox. If you have purchased an IUL policy, you may be entitled to compensation by joining this Indexed Universal Life Insurance False Marketing lawsuit investigation. Attorneys heading up the claim said proper protocol was not followed. If you dont keep paying the higher premiums to keep the policy in-force, you risk losing all previously paid premiums, as well as the death benefit going forward. Even if a market index performs extremely well, not all of these gains will be translated into a policys interest rate. Published April 17, 2023 9:54AM. Click here to view a video showing how easy our software is to use. I do NOT like or trust most IMOs. 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. Go on and tell us about your poor consumer experience. Although IUL policies can be a good idea for some people, it is important that insured individuals are properly informed of the risks surrounding the policies. No. According to bankruptcy documents, Shurwest faces at least 140 claims totaling more than $197.5 million. But if the option expires out of the money, the entire investment in that option is lost. September 22, 2020. InsuranceNewsNet Senior Editor John Hilton has covered business and other beats in more than 20 years of daily journalism. Is the company managing the payments bonded in case they abscond (steal) the money? An indexed universal life insurance policy is different. Regulators are not doing anything to stop the unfair practices, he warns. During this meeting, their agent Tiffany Xu reportedly encouraged them to take out an Indexed Universal Life policy based on false and misleading representations of the policys performance. Structured payment streams and IULs do NOT mix! A lawsuit could also help enact change in the industry and stop insurance companies from engaging in these allegedly deceptive practices. Thousands of Illinois drivers cited for using a cellphone while driving could find themselves part of a class action lawsuit. However, these life insurance policies differ from others because IUL policies grow according to the performance of a stock index. For information on deleting the cookies, please consult your browsers help function. 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. Life insurance companies that sell traditional policies like whole life insurance invest primarily in corporate bonds and government-backed mortgages where the money will be safe and generate a small, but reliable, annual return each year. The lawsuits from this structure could bring down an IMO who promoted this structure to agents. If you purchased a PacLife PDX Policy and are not satisfied with how your policy has performed, you may be entitled to compensation for yourself and for other policy owners by joining this Pacific Life Insurance class action lawsuit. Consumers may not know about the intricacies of IUL policies, allowing PacLife to exploit their lack of knowledge. Please review our Affiliate Link Disclosure for more information. document.getElementById( "ak_js_5" ).setAttribute( "value", ( new Date() ).getTime() ); @2023 Top Class Actions. 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. Indexed universal life insurance is in the same class as other permanent life insurance policies, such as whole life insurance. But the Center for Economic Justices Birnbaum says insurance agents often use optimistic projections, or illustrations,to show the gains these policies can earn over the years. Something to be aware of Transamerica is that they just settled a class action lawsuit about their "cost of insurance . Privacy Policy | Insurance companies are watching what happens with this lawsuit very carefully, and it could affect the industry as a whole. We have to rely on the employees to received their paychecks and then turn around and give it to the trust company. A list of open investigations and We use cookies to improve functionality and performance, enhance user experience, and provide tailored content. Mix in massively complex products designed to juice illustrations with opaque and unaccountable features and you have the recipe for future financial disaster, said Birnbaum in a July 2020 statement that warned consumers against buying IUL. information here is for reference only. An indexed life insurance policy is like other life insurance policies in that it will provide a death benefit to a beneficiary in exchange for premiums paid every month. Someone who is receiving annuity payments can choose to sell those payments to an investor for a lump sum. Attorneys heading up the claim said proper protocol was not followed. roccy@strategicmp.net, Why Every Advisor Should Have a 65 License. If you make a purchase using There is a class action lawsuit alleging just that in California. So, its no wonder that IULs are complicated. PacLifes PDX PIUL policy is the riskiest and most leveraged IUL product in the industry and is is impossible to understand, impossible to explain to clients and impossible [for agents] not to sell, simply because it illustrates the best, reads the lawsuit. Recently, a class-action lawsuit was filed against Pacific Life regarding its popular and controversial PDX Index Universal Life (IUL) product. The main issues are not surprising to anyone who has studied the PDX product. (the class was certified at the end of 2021). In the case of a sudden or unexpected death, life insurance can help cover debts and provide income for bereaved family members. administrator or law firm. On, What can be learned from this Class Action Lawsuit. The Forbes Advisor editorial team is independent and objective. 2023 considertheconsumer.com, IUL Class Action Lawsuit Investigation Claims False Marketing, Click to share on Twitter (Opens in new window), Click to share on Facebook (Opens in new window), Click to share on LinkedIn (Opens in new window), Click to share on Reddit (Opens in new window), Click to share on Pinterest (Opens in new window), Click to share on WhatsApp (Opens in new window). To read one of the original complaints from 2019, click here. The Class Representatives who suedand all of the Class Members like themare called Plaintiffs. Interest rates are determined by the underwriter of the universal life policy but with a contractual minimum which is usually around 2%. Can You File an IUL Lawsuit for False Marketing? This awful IUL sales story proves my point. According to court documents, Shurwest is proposing to pay claims through an arbitration process using the proceeds from three years of revenue, which it projects at about $6.14 million. In 2020, a California woman took legal action by filing a class action lawsuit against Pacific Life Insurance Company. Performance information may have changed since the time of publication. I didnt understand that the illustration involved my borrowing from my policy and reinvesting large sums for several more years. This compensation comes from two main sources. In addition to Consumer Watchdog, the case was prosecuted by attorneys from two law firms with a history of life insurance litigation: Bonnett Fairbourn Friedman & Balint and Shernoff Bidart Echeverria & Bentley. Report Fraud lawsuits can be viewedhere. Nonetheless, Vazirani insisted that his concern is to rid the industry of abusive marketing techniques being used to fund IUL sales. Their only requirement is to be licensed by the state as an insurance agent. What We Do. Also, the new AG 49A permits the IUL illustration crediting rate to be 50 basis points higher than the policy loan rate, down from 100 basis points. The NAIC has been very active on the regulation of IULs, which continues to this day, says the ACLIsDolan. Click here to download an order form so you can sign and start using the industrys best IUL comparison software. A federal judge in Richmond, Virginia, approved a $25 million universal life insurance class action at a fairness hearing Monday. You show the client how to take the money that they need to keep safe for their future IUL premiums and show them how to get a 7-10% investment return on it (vs. earning nothing or very little if kept in a savings account). If you currently own a Eufy device with recording features, and wish to know more about your claims, click here. that reports on class action lawsuits, class action settlements, They allege those tickets were illegally and intentionally processed through the wrong court system, allowing the city to keep the fines for itself, totaling some $20 million. Your email address will not be published. The new lawsuit could significantly damage what remains of the Shurwest business, said Anil Vazirani, president and CEO of Secured Financial Solutions, a fiduciary advisory firm. View Guidelines. Be cautious if agents try to paint a pretty picture with illustrations that arent guaranteed, or who suggest youll make out big by taking out a loan to pay for your IUL. According to the companys announcement, these new policies build on the structure of the first PDX policies with an added Enhanced Performance Factor Rider that allows policyholders more options for their policies. What has happened is exactly what I predicted would happen when I saw the structure nearly two years ago. It is believed that some insurers are using current interest rates and costs to project policy benefits without taking into account how the performance of stock indexes and costs charged to the policyholder can fluctuate over time. It was built on faith. With the structure payments, you are actually increasing the premium that goes into the IUL! Just because some agents misrepresent something does NOT make it a bad product. "It is worth following this case because of this sort of novel AG 49 background," Kimmerling said. New cases and investigations, settlement deadlines, and news straight to your inbox. Obamacare Premiums Drop For 3rd Consecutive Year, M&A Should Resume In 2021 As Insurers Reinvent: Deloitte, Find out how you can submit 269-216-9978 Radius Health, Inc. 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Watching what happens with this lawsuit very carefully, and it could affect the industry as whole. Join the Indexed universal life ( IUL ) class False Marketing lawsuit investigation features, and could... And Exchange commission can choose to sell those payments to an investor for a lump.! To read one of the original complaints from 2019, click here download!