Reports have surfaced of life insurance companies engaging in secretive transactions that make them appear more financially stable than they actually are. Our lawyers are reviewing potential lawsuits for policyholders whose premiums have increased as a result of these deceptive behaviors.
Free Confidential Lawsuit Evaluation: If the cost of your annuity or life insurance premium has increased, you should contact our law firm immediately. You may be entitled to compensation by filing a suit and our lawyers can help.
What’s the Problem?
Federal law requires insurance companies to maintain a certain amount in reserves to pay out future claims, as well as an amount above that set aside in case of a natural disaster or terrorist attack. However, reports have surfaced indicating that over 80 major life insurance companies aren’t maintaining adequate reserves, and are instead manipulating their financial solvency through dealings with other companies in transactions referred to as “financial alchemy.” It is believed that this practice may even extend beyond these 80 companies to the point of being virtually industry-wide.
Which Companies are Affected?
If you hold an annuity, universal life policy and/or flexible premium adjustable life policy through any of these companies, contact our lawyers to learn more about your legal rights:
- 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)
- And more
Insurance Fraud Responsible for Skyrocketing Premiums
These and other insurance companies have been accused of making secretive financial transactions with “captive insurers” or “shell corporations,” outside entities that are actually owned by the company itself. Allegations have been raised that the companies are transferring significant liabilities to these captive insurers, which creates the illusion of financial strength and disguises the risks faced by the company. These deceptive practices have resulted in insurance companies passing the expense of their reserves onto their policyholders, which has caused many customers’ insurance premiums to increase dramatically.
Are Lawsuits Being Filed?
Lawsuits have already been filed against numerous companies accused of failing to maintain adequate reserves, creating a false illusion of surplus and misrepresenting their financial stability. Complaints allege that these companies misled their customers into thinking their financial health was more stable than it actually was because of deceptive transactions with captive insurers and/or shell companies. As a result, consumers may have purchased annuities and universal life insurance policies that were significantly less valuable than advertised.
Do I Have a Life Insurance Fraud Lawsuit?
The Bad Faith Insurance Litigation Group at our law firm is an experienced team of trial lawyers that focus on the representation of plaintiffs in 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 universal life insurance policy through any of the companies listed in this article, you should contact our law firm immediately. You may be entitled to a settlement by filing a suit and we can help.