IF YOU KNOW A CLIENT OR FRIEND WHO GOT CAUGHT UP IN THIS STRUCTURE, Pac Life Sued for Fraud in Class Action Over Deceptive IUL Sales. Pacific Life Insurance is headquartered in Newport Beach, California and was founded in 1868. Submit a claim. Universal life insurance allows customers to buy policies at a relatively low cost, although the exact premium is variable. 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)! Over 450 advisors signed up for the WEBINAR. Universal life insurance policies allow policyholders to change the amount and frequency of premium payments as long as their policy contains enough cash to cover monthly deductions. With the structure payments, you are actually increasing the premium that goes into the IUL! Interest rates were quite high during this period, so insurers had to guarantee minimum interest rates to sell these policies. This awful IUL sales story proves my point. This class action lawsuit lays out a devastating and systematic argument for behavior that, if found to be true, would undermine that story. 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? 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. 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. 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. I do NOT like or trust most IMOs. The debacle prompted a slew of class-action lawsuits against a number of major carriers, and the failure of some carriers, especially Baldwin United. I also feel that suitability and policy design will be a huge issue in 10-15 years for our industry. Minnesota Life is too big to bring down over this, but the damages from these lawsuits will be significant if liability is proved. Class action lawsuits are now being filed on behalf of cable installers and cable repair workers who say they're not being paid properly. 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. Universal life insurance allows customers to buy policies at a relatively low cost, although the exact premium is variable. 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. Unfortunately, in 2019 the PDX policy was the #1 selling IUL. UBS Yield Enhancement Strategy Investigation. First let me say that a 6th grader doing a few minute’s worth of research on the internet should have come to the conclusion that the person behind this structured payment company was someone who you would NOT want to do business with. You can sort the listing three ways—actions or settlements that are (1) open to claims, (2) pending or (3) closed—or use the calendar to search for upcoming claims deadlines. No. If a lawsuit can be filed, indexed universal life insurance policyholders may be able to recover compensation for any harm they suffered in buying these policies. Johnson & Johnson has paid hundreds of millions of dollars to people who developed ovarian cancer or mesothelioma after using J&J's talc products. Girard Sharp is investigating a potential class action lawsuit following allegations of various defects in Google Pixel 3 smartphones, including battery drain and camera issues. https://bestcompany.com/life-insurance/company/national-life-group U.S. District Judge Christina Snyder scheduled a May 4 settlement approval hearing. 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. World Financial Group - Big Class-Action Lawsuit against Transamerica’s FFIUL? Class members with policies affected by the increases that terminated before Dec. 31 would receive cash payments refunding the past alleged overcharges withdrawn by Transamerica before the policies terminated. Submit a claim. Los Angeles, CA – Transamerica Life Insurance Company has agreed to settle a class action lawsuit brought on behalf of policyholders across the United States alleging that Transamerica improperly increased the monthly charges that the company withdrew from the accounts of policyholders who own certain “universal life” insurance policies. Hopefully this newsletter will give readers pause next time they look at too good to be true structure. 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. This extensive article explains what is IUL, how it works, and the pros and cons of an indexed universal life policy. Enjoy the videos and music you love, upload original content, and share it all with friends, family, and the world on YouTube. 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. 1) Educate, mentor, and help advisors give better advice to clients (CALM) I’m in this industry to HELP ADVISORS GIVE BETTER ADVICE TO CLIENTS AND TO KEEP THEM OUT OF TROUBLE! Some of Transamerica’s universal life insurance policies were payin… If you want to watch it on RECORDING, click on the following link:. The structured settlement company isn’t bonded. What part of this structure looks like it is one that will protect our client’s investments? Through this method, the lawsuit continues, policyholders surrendered a lump sum to FIP in exchange for an income stream – monthly payments comprised of part of the amount paid to FIP plus a “pre-determined rate of return.” The advantage of this plan, the defendants purportedly relayed to proposed class members, was that policyholders would be able to put more money toward their … Someone who is receiving annuity payments can choose to sell those payments to an investor for a lump sum. This settlement for approximately USD 88 million removes the uncertainty of this ongoing litigation for the company and its customers. A proposed class action settlement may affect your rights. 2) I help them market (www.strategicmp.net for list of marketing tools) When they fail to do so, consumers can unite to file a class action lawsuit. Consumer Action maintains this listing of notable class actions so that interested consumers can learn more, join a pending action or make a claim. IUL is a complicated product. To read the class action complaint (a MUST read), click on the following link: http://advisorshare.com/pac-life-class-action-pdx-iul. Be aware of the EIUL lawsuits EIUL Insurers Face Class Action Lawsuits. What is an SPS? Protect your rights by speaking with a Girard Sharp consumer protection attorney—dial (866) 981-4800 or submit your information below. By now you may have heard about a class action lawsuit filed in Orange County last week against Pacific Life. The account value increases and payments would be based on the proportion of the total challenged charges paid by each policyholder, plaintiffs’ lawyers said. 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. If you didn’t see last week’s newsletter titled: New Proprietary Premium Finance Life Program click on the following link to read it. 3) I have a software company (OnPointe which had the best investment risk software in the industry (www.onpointeriskanalyzer.com)). E-Cigarettes Settlement . I’m guessing that the lawsuits I got my hands on are only three of many. Structured payment streams and IULs do NOT mix! No. This review examines Pacific Life’s new cost/benefit paradigm within their new PDX product. 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 … 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. 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. However, its consumer complaint score is higher than average and there have been a few lawsuits in the IUL product. Chen joined Premier Financial Alliance in … 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. 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)! Are you kidding me? Class Action and Other Lawsuits 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 investigation. 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. In the IUL sales structure I’m covering in this newsletter, the payment streams were coming from Federal employees (from their pension payments). Pacific Life Insurance is headquartered in Newport Beach, California and was founded in 1868. Join a Free PacLife & Minnesota Life Lawsuit Investigation. A reputable trust company isn’t being used. The lawsuit was filed Aug. 6 in Orange County Superior Courts by plaintiffs Hong Li and Tailong Liu. A Judge of the U.S. District Court for the Southern District of New York authorized this Website. Class Action Lawsuit regarding IUL multipliers Read More Insurance , cash value life insurance , Indexed universal life insurance , Coronavirus , Universal Life Insurance / September 17, 2020 The cost increases relevant to the recent class-action lawsuits extended into the double and triple digits on a percentage basis. Enjoy the videos and music you love, upload original content, and share it all with friends, family, and the world on YouTube. Our Commitment to Excellence. The plaintiffs argued that Transamerica impermissibly increased the rates in 2017 to recoup losses. In June 2014, a state court judge preliminarily approved a settlement to a class-action lawsuit against Fidelity & Life Guaranty Life Insurance, Co. This is going to be good. Chen joined Premier Financial Alliance in 2017 and Gonzales in late 2017 or early 2018. 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). Calculating different variables in an IUL policy isn't simple nor straightforward. The risk is low and the reward is low, but safe. I’ve been warning about Pac Life’s PDX IUL policy for years. Class Action and Other Lawsuits Johnson & Johnson has paid hundreds of millions of dollars to people who developed ovarian cancer or mesothelioma after using J&J's talc products. Well, the agents who got caught up in what appears to be a scam, said no, no, no, no. Indexed Universal Life insurance policies are a type of permanent life insurance policy that bases its gains on how the stock market performs. With the structure payments, you are actually increasing the premium that goes into the IUL! Besides the questionable history of the person behind the structure, the structure itself has such glaring flaws to it that you’d have to be an idiot to recommend this to clients. 269-216-9978 A recently filed RICO class-action lawsuit alleges Premier Financial Alliance is a “particularly egregious classic pyramid scheme”. Background. It was built on faith. Open. They apparently don’t have the money! The June 25th class-action lawsuit was filed by Plaintiffs Rui Chen and Wenjian Gozales in California. I suspect it’s because we all want to believe there’s a “magic pill” answer to the volatility of the stock market. No. PLEASE EMAIL ME IMMEDIATELY TO SET UP A CALL. The easiest example of an SPS is when someone receives a guaranteed payout from an annuity for X amount of years. 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! It is my belief after working with insurance agents for two decades that I’m sure most didn’t do any real research and just knew they could sell a lot of IULs and make extra money selling the structured payments as well. Isnt insurance about guarantees anyway, LIKE whole life??? In 2008-2009 the Great Recession delivered a second knock-out blow to markets (as well as investor complacency). In addition to covering that, today we’re also revisiting the original 2018 Premier Financial Alliance pyramid lawsuit. The headline specifically references a class action lawsuit investigation trying to find (and presumably sign up) Pacific Life PDX and Minnesota Life Eclipse IUL policyholders who have purchased either of the two products within the last 5 years. You can sort the listing three ways—actions or settlements that are (1) open to claims, (2) pending or (3) closed—or … 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. We have to rely on the employees to received their paychecks and then turn around and give it to the trust company. Their defense will assuredly be every bit as scalding, comprehensive and technical as the complaint. Transamerica increased the monthly deduction charges on those policies in October 2017 and June 2018, respectively, according to the plaintiffs. Image source: Wikimedia Commons. I expect to see class-actions against carriers for underfunded policies that they are allowing idiot agents to sell. https://strategicmp.net/new-premium-finance-life-program. Talcum Powder Settlement. 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. Way worse than the UL lawsuits in the 90s. This is particularly dangerous with IUL policies, where a typical policy holder has extensive disposable income and the policy premiums are often enormous. The employee who is receiving $750 a month for the next several years could sell that payment stream for a lump sum. A lawsuit could also help enact change in the industry – and stop insurance companies from engaging in these allegedly deceptive practices. It’s a win-win. Class Action Lawsuit regarding IUL multipliers. Nationwide IUL Accumulator is a very strong product. Continue reading » Insurer Victory in IUL Class Action In a highly-anticipated ... Keep Reading » ... Across industries, companies spent $2 billion on class action lawsuits in 2014, slightly less than the $2.1 billion they spent in 2013. 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. SiriusXM Class Action Settlement A class action lawsuit filed against SiriusXM has been resolved with a $96 million settlement. A recently filed RICO class-action lawsuit alleges Premier Financial Alliance is a “particularly egregious classic pyramid scheme”. In addition to facing thousands of individual lawsuits filed by policyholders who allege their disability claims were wrongly denied, the company has been the defendant in numerous class action lawsuits for insurance bad faith practices since 2002.. Oh, if you want to download for FREE my Bad Advisors book (I highly recommend it), click on the following link: https://strategicmp.net/bad-advisors-download. 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. Or put it in CDs that mature simultaneously to pay the IUL premiums? Instead, the more potent fear for life insurers is a class action lawsuit with teeth. Why would anyone want to buy a policy that has as many pitfalls as Equity Indexed Universal Life? If you purchased an Indexed Universal Life Insurance policy after 2015, you may have a claim for relief.
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