There have been two class action lawsuits filed against Transamerica Life Insurance Company alleging that the company improperly increased the monthly charges on its universal life insurance policies.
The first lawsuit, filed in 2015, alleged that Transamerica increased the monthly charges on 70,000 policies by as much as 38%. The plaintiffs claimed that Transamerica failed to adequately disclose the potential for these increases to policyholders.
The second lawsuit, filed in 2017, alleged that Transamerica increased the monthly charges on 8,000 policies by as much as 15%. The plaintiffs claimed that Transamerica violated the terms of the policyholders’ contracts by increasing the charges without their consent.
In 2018, Transamerica agreed to settle the first lawsuit for $195 million. As part of the settlement, Transamerica agreed to refund the overcharges to affected policyholders and to make changes to its policies to prevent future increases without policyholder consent.
In 2020, Transamerica agreed to settle the second lawsuit for $88 million. As part of the settlement, Transamerica agreed to refund the overcharges to affected policyholders and to make changes to its policies to prevent future increases without policyholder consent.
The Transamerica IUL lawsuits highlight the importance of policyholders reading their policies carefully and understanding the terms and conditions of their coverage. Policyholders should also be aware of the potential for insurance companies to increase premiums or charges without their consent.
