Are the payment streams from the federal employees direct deposited into a trust or dedicated account that will then be used to make payments to the investor? Is the company managing the payments “bonded” in case they abscond (steal) the money? It’s truly amazing that Minnesota Life and one of the bigger IMOs in the industry fell for this plan. Sales of indexed universal life insurance have been booming, but buyers may have been sold on policy projections that won't come true. Way worse than the UL lawsuits in the 90s. Transamerica Life Insurance Co. has agreed to settle a class-action lawsuit filed in Los Angeles, alleging that the company improperly increased the monthly charges of holders of universal life policies, the plaintiffs’ attorneys announced Tuesday.eval(ez_write_tag([[250,250],'mynewsla_com-medrectangle-3','ezslot_3',120,'0','0']));eval(ez_write_tag([[250,250],'mynewsla_com-medrectangle-3','ezslot_4',120,'0','1'])); Under the proposed settlement, filed in U.S. District Court, Transamerica has agreed to pay up to $88 million in account value credits to policies in effect and those for which death claims were pending as of last Dec. 31, according to attorney Andrew S. Friedman. Open. Someone who is receiving annuity payments can choose to sell those payments to an investor for a lump sum. 7. Roccy DeFrancesco, JD It would be at a discount and the buyer, if he/she waits to receive all the payments, could see an investment return of let’s say 7-10% on their money. Huge fall out and reckoning coming for the IUL industry in the near future. I’ve been warning about Pac Life’s PDX IUL policy for years. The Thompson case is the second class action lawsuit challenging increases in the monthly charges imposed by Transamerica on universal life insurance policies. Huge fall out and reckoning coming for the IUL industry in the near future. In that book I have a chapter on IMOs. Universal life insurance allows customers to buy policies at a relatively low cost, although the exact premium is variable. If the Although Largely Deflated, IUL Illustration Statute Lawsuit Rolls On. E-Cigarettes Settlement . And the insurance agent can make a commission on the sale of the structured payment and the target premium on the IUL is larger (winner winner chicken dinner)! The lawsuit was filed Aug. 6 in Orange County Superior Courts by plaintiffs Hong Li and Tailong Liu. This review examines Pacific Life’s new cost/benefit paradigm within their new PDX product. The lawsuit addressed their IUL product - PDX. Indexed Universal Life suddenly looked a lot more appealing once the risk of major market losses came front and center again. Able to rise and plateu. 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. If you work or have worked as a cable installer or repair technician, read on for more information or get in touch with us to find out if you too have a case. If you didn’t see last week’s newsletter titled: New Proprietary Premium Finance Life Program click on the following link to read it. When they fail to do so, consumers can unite to file a class action lawsuit. No claim forms would be required, plaintiffs’ attorneys said. Class action lawsuits can be based on allegations of defective products, false advertising, discrimination, unlawful employment practices, or other causes. 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. Protect your rights by speaking with a Girard Sharp consumer protection attorney—dial (866) 981-4800 or submit your information below. Learn … The insurance industry will be watching closely in the coming months as a class-action lawsuit over an indexed universal life policy plays out in a California courtroom. To read the complaints filed against Minnesota Life, Shurwest, and several other defendants, and to read a separate CLASS ACTION complaint against Minnesota Life, click on the following link: One question I get quite often from advisors who have been getting my newsletters is: what exactly do you do? It’s the second such lawsuit and settlement arising out of so-called “cost of insurance” increases by Transamerica, according to Consumer Watchdog. This is particularly dangerous with IUL policies, where a typical policy holder has extensive disposable income and the policy premiums are often enormous. Protect your rights by speaking with a Girard Sharp insurance attorney (dial 866-981-4800) or by submitting your information above. Open. If its like this why even take the risk selling IUL and be involved in a potential class action lawsuit? This settlement for approximately USD 88 million removes the uncertainty of this ongoing litigation for the company and its customers. Is it better to let the money sit safely in a savings account? If you purchased the Pacific Discovery Xelerator (PDX) Universal Life policy from PacLife or the Eclipse IUL from Minnesota Life in the last 5 years, you may qualify to join this universal life insurance lawsuit or class action lawsuit … Chen joined Premier Financial Alliance in … With the structure payments, you are actually increasing the premium that goes into the IUL! Plaintiffs Say Transamerica Settles Lawsuit Over Universal Life Policy Charges, Man Expected to Survive Wounds in Possible Gang-Related LB Shooting, Man on Cellphone Critically Wounded in Pasadena Alley, One Person Injured in Motocross Accident in Anza, Lisa Marie Presley Gets Joint Custody Of Twins: She’s Elvis Presley’s Only Child, Motorist Killed in Christmas Day Crash in Moreno Valley ID’d, Man at Illegal Street Race in Carson Dies, Others Injured by Same Car, Ticket With All Six SuperLotto Plus Numbers Sold in San Jose, Two People Seriously Injured in Christmas Day Crash in Riverside. Chen joined Premier Financial Alliance in 2017 and Gonzales in late 2017 or early 2018. 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. In a class action investigation, Berger Montague has unearthed evidence to suggest that Indexed Universal Life Insurance policies may be based on fraudulently inflated return evaluations. In an Unum class action lawsuit, a group (class) of people claiming a common grievance collectively brings a claim (action) against Unum. The debacle prompted a slew of class-action lawsuits against a number of major carriers, and the failure of some carriers, especially Baldwin United. roccy@strategicmp.net, Why Every Advisor Should Have a 65 License. It offers several great features and has excellent ratings in all dimensions. A recently filed RICO class-action lawsuit alleges Premier Financial Alliance is a “particularly egregious classic pyramid scheme”. The plaintiffs argued that Transamerica impermissibly increased the rates in 2017 to recoup losses. Chen joined Premier Financial Alliance in 2017 and Gonzales in late 2017 or early 2018. World Financial Group review from Berkeley, California rated 1.2/5.0 with Images: Transamerica’s Financial Foundation Indexed Universal Life (FFIUL) policy is WFG’s top life insurance product. Whole life insurance policies, on the other hand, require fixed monthly payments. 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. Calculating different variables in an IUL policy isn't simple nor straightforward. 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