General Publications Spring 2018

“Cost of Insurance Increases Spur Policyholder Lawsuits in Federal Courts Worth Watching,” American Bar Association Tort Trial & Insurance Practice Section, Health and Disability & Life Insurance Law Committee Newsletter, Spring 2018.

Recent announcements by numerous life insurers that they are raising the cost of insurance (“COI”) on certain universal life policies have spurred litigation across the country relating to those increases. In the last few years, several life insurers have announced cost of insurance COI increases on old blocks of universal life policies, mostly sold in the 1980s and 1990s. The COI increases have, in turn, resulted in significant increases to policyholder premiums, as policyholders subject to the increases must now pay more to maintain their coverage. In response to the recent COI increases, several policyholders have filed putative class action lawsuits against their life insurers alleging that the increases were based on factors not permitted by the terms of their policies—most significantly past performance rather than future expectations. This article discusses some of the key pending cases based on recent COI rate increases.
Meet The Author
Naor, Rachel
Senior Associate
Phone: 415.243.1013
Marks, Max
Senior Associate
Phone: 404.881.7853
Media Contact
Nicholas Clarke
Senior Communications Manager
Phone: 212.210.1222
This website uses cookies to improve functionality and performance. By continuing to browse this site, you are consenting to the use of cookies on this website. For details, see our Privacy Statement