Our lawyers are reviewing allegations of fraudulent accounting practices by life insurance companies which have resulted in policyholders being charged excessive premiums.

Free Confidential Lawsuit Evaluation: If you are a life insurance policyholder who has been notified of a substantial increase in premium payment, or if your “cost of insurance” has gone up, you should contact our law firm immediately. You may be entitled to compensation by filing a suit and our lawyers can help.

Life Insurance FraudHave Your Life Insurance Premiums Suddenly Increased?

If you received a notice that the cost of your universal life policy and/or flexible premium adjustable life policy is significantly increasing, you were likely given 3 options:

  • Cancel the policy
  • Pay massively increased rates for the same policy
  • Wipe out the policy savings you’ve accumulated over the years

However, before you make any changes to your life insurance policy, contact our lawyers first. We’ll investigate your case and make sure that you don’t have to pay for an insurance company’s fraud or business mistakes.

How Does Insurance Fraud Work?

Life insurance companies are required by law to maintain a certain amount in reserves to pay out future claims, as well as an amount above that set aside in the event of a natural disaster or terrorist attack. However, more than 80 major life insurance companies have been accused of failing to maintain adequate reserves and manipulating their financial status by making secretive financial transactions with “captive insurers,” outside entities that are actually owned by the company itself.

Lawsuits allege that these insurance companies have transferred significant liabilities to captive insurers, which creates the illusion of financial health and disguises the risks faced by the company. These deceptive practices have resulted in many customers’ insurance premiums increasing dramatically.

Which Insurance Companies are Affected?

If you hold an annuity or life insurance policy with any of the following companies and your premiums increased significantly, you may qualify to participate in a lawsuit:

  • John Hancock Life Insurance Company
  • Transamerica Life Insurance Company
  • The Prudential Insurance Company of America
  • Lincoln Benefit Life Company
  • Zurich American Insurance Company
  • ReliaStar Insurance Company
  • ING Life Insurance and Annuity Company
  • ING USA Annuity and Life Insurance Company
  • ING/Voya (sold through subsidiary Security Life of Denver Insurance Company)

It is believed that fraudulent accounting practices may extend beyond these companies to the point of being virtually industry-wide.

Class Action Filed Against Transamerica Life Insurance Co. Over Massive Premium Increases

In May 2016, a class action lawsuit was filed against Transamerica Life Insurance Company on behalf of a group of universal life policyholders who experienced a sudden 38% increase in monthly deductions withdrawn from their accumulation accounts. Plaintiffs allege that unilateral action by Transamerica resulted in massive increases in policyholder premiums, and that the company falsely stated that the increase was permitted by the policy terms.

Additionally, the class action alleges that Transamerica’s real reason for the premium increase was to subsidize the cost of meeting its interest guarantee, to recoup past losses on the policies and other investments, and to make the policies more profitable by forcing terminations by those policyholders who could not afford the rate increase.

Do I Have a Life Insurance Fraud Lawsuit?

The Class Action Litigation Group at our law firm is an experienced team of trial lawyers that focus on the representation of plaintiffs in life insurance fraud lawsuits. We are handling individual litigation nationwide and currently accepting new cases in all 50 states.

Free Case Evaluation: Again, if you own an annuity or life insurance policy and your premium has increased significantly, you should contact our law firm immediately. You may be entitled to compensation by filing a suit and our lawyers can help.

FREE Confidential Case Evaluation

To contact us for a free review of your potential case, please fill out the form below or call us toll free 24 hrs/day by dialing: (866) 588-0600.

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