Policyholders from all states may be eligible for legal action, though lawyers are especially interested in speaking to consumers from Arizona, California, Florida, Illinois, Michigan, Minnesota, and New Jersey. (Id., 19.) Do Not Sell or Share My Personal Information, Free cash coming to Facebook users. Rules of Court, rule 9.40, subds. 3. (a).) Public Records Policy. He was very patient, and I never felt rushed. The list is updated frequently, so check . Agents who market life insurance as a savings vehicle, but fail to make use of blending have always ventured into territory that might one day be illegal, and this lawsuit might be the catalyst for that eventual discussion/reality. by Defendant Pacific Life Insurance Company ("PacLife") to sell its "Pacific Discovery Xelerator IUL" ("PDX") indexed universal life insurance policies to California residents. 63D^fgI V`~;`v%&0LYl 70 || The exact amount that a policyholder can walk away with will vary depending on the surrender fees charged by their insurance provider. <> Notice and Acknowledgment of Receipt; Filed by Gary Marenzi (Plaintiff); Rebecca Prange (Plaintiff); Gregory Prange (Plaintiff) et al. (Cal. Silverman also sold them two separate disabilities policies, as well as health insurance and long-term care insurance. Again, Plaintiffs ignore their own allegations: The contract with United Omaha was only 20 years, so their claims against United Omaha do not stretch beyond the 20-year period of the contract. Now, PacLife moves to compel further responses to form interrogatories, special interrogatories, and requests for production of documents that were served in December 2021. . v. Pacific Life Insurance Group, et al. Weaver therefore obtained a $20 million on Rebecca Prange from Lincoln without disclosing that PacLife had declined the policy. Neither Weaver nor Silverman disclosed any risks of the proposed premium financing of the new insurance policies. If you would like to change your settings or withdraw consent at any time, the link to do so is in our privacy policy accessible from our home page.. Pacific Life provides annuities, life insurance products, mutual funds, and different kinds of investment products and services. 5 0 obj The Court sustains the demurrer filed by United of Omaha Life Insurance Company. SSEK Law Firm believes that filing your own individual FINRA arbitration claim, rather than joining a class action, increases your chances for maximum recovery. . (Plaintiffs Memorandum of Points & Authorities, p. This case was filed in Orange County Superior Courts, Civil Complex Center located in Orange, California. It will also be interesting to see what happens with the agent Tiffant Xu and her insurance agency. Gwendalyn Douglass v. Reliant Life Shares LLC et al. The complaint does allege specific wrong-doing on the behalf of agent Xu. DocketComplaint; Filed by Gary Marenzi (Plaintiff); Rebecca Prange (Plaintiff); Gregory Prange (Plaintiff) et al. What will be most interesting here is if the plaintiffs' attorneys can prove their allegations based on little historical evidence and a majority of hypothetical future performance. ), Finally, the Court cannot conclude that there is any overlap in the damages between the two sets of claims, as the allegations make clear that each set of damages stem from different transactions. I think you are very correct in the context of an agent motivated to write more permanent life insurance per the budget/death benefit need, but the context of this discussion was blending used to maximize cash building potential of a policy. These costs may come in the form of surrender penalties deducted from the policys actual cash value. NFU?[(c=h?qoCAI=tNsx0@0w/n[x'uhY55mPk/4IoKzWq}S0p?M/dPlZ:.y`W;V2(h'4| S document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Top Class Actions is a Proud Member of the American Bar Association, Various Trademarks held by their respective owners. Based upon the foregoing, the Court finds that the first set of claims and the second set of claims have been improperly joined in the same case. However, my policy is a Universal Life Policy. Now what. Union Pacific faces wave of lawsuits. Additionally, Silverman sold Rebecca Prange a $500,000 life insurance policy with Continental Western Insurance Company. Not blending in an IUL is more devastating than in whole life. Each attorney at our firm has experience representing investors in securities arbitration claims and/or lawsuits. Summons (on Complaint); Filed by Gary Marenzi (Plaintiff); Rebecca Prange (Plaintiff); Gregory Prange (Plaintiff) et al. So PacLife could theoretically explain away its underperformance as variability in the market. Continue with Recommended Cookies, In August of this year, two California residents filed a lawsuit against the Pacific Life Insurance Company alleging:if(typeof ez_ad_units!='undefined'){ez_ad_units.push([[320,50],'theinsuranceproblog_com-medrectangle-3','ezslot_4',144,'0','0'])};__ez_fad_position('div-gpt-ad-theinsuranceproblog_com-medrectangle-3-0');if(typeof ez_ad_units!='undefined'){ez_ad_units.push([[320,50],'theinsuranceproblog_com-medrectangle-3','ezslot_5',144,'0','1'])};__ez_fad_position('div-gpt-ad-theinsuranceproblog_com-medrectangle-3-0_1');.medrectangle-3-multi-144{border:none!important;display:block!important;float:none!important;line-height:0;margin-bottom:7px!important;margin-left:auto!important;margin-right:auto!important;margin-top:7px!important;max-width:100%!important;min-height:50px;padding:0;text-align:center!important}. Through every step of the litigation he explained what to expect to happen. Then, Plaintiffs discovered that, in fact, the United Omaha policy was not paid-up for 20 years, requiring them to pay $596,960 to maintain this policy for the full 20 years, per their original plan. You might not like it, and thats completely fine. Petersburg, and Washington, D.C. Allow me to explain. (Id., 27.) An IUL class action lawsuit investigation is underway to probe into allegations that people who purchased Indexed Universal Life (IUL) insurance policies were misled into expecting unrealistic rates of return that comes after insurance companies presented used fabricated and false illustrations in marketing literature and sales material. According to this suit, the insurance company routinely used false marketing when advertising their IUL PDX policies to prospective customers. When a policy is surrendered, the policyholder will lose the premiums they paid. In March 2021, after the policy had been in effect for ten years, United Omaha imposed substantial additional premiums beyond those agreed to at the outset. They are both named as defendants in the complaint. But outside of a very complex legal/ethical issue for selling life insurance, it's amusing to me that indexed universal life insurance is the focal point for a blending conversation and its necessity when marketing and selling life insurance. The Court finds that the amount is fair and reasonable under the circumstances. On October 26, 2020, Wintrust sent another bill for $210,424.58 for interest due, of which $103,775.57 was due by November 19, 2020, and sought additional collateral of $52,150. Indeed, Plaintiffs seek $596,950 in damages to pay the policy to the 20th year of the contract. xZvE+rTq^ lhezB39EAW}8SVV7oDI?'W{8iOVwr%:RY In 1972, the investment management subsidiary, Pacific Investment Management Company (PIMCO), was launched. Complaint; Filed by Gary Marenzi (Plaintiff); Rebecca Prange (Plaintiff); Gregory Prange (Plaintiff) et al. I bought it because I was told the policy premium would NEVER INCREASE and would never be cancelled unless I didnt make my premium payments. 2020: Pacific Life Insurance Company was the defendant in a class action securities fraud lawsuit. ", "My experience with Ryan Cook has been very positive. Law360 (November 11, 2010, 3:27 PM EST) -- A federal judge has dismantled a putative class action alleging Pacific Life Insurance Co. knew or should have known that the sale of certain . We might speculate on future scenarios using math equations, but thats all they are speculations. It became only worth $248,000 upon death. Required fields are marked *. What great work you do on behalf of people like me who have been wronged, yet don't know how to navigate the appeals/mediation/arbitration process as you do. The lawsuit does not specify a monetary reward Hughes hopes to receive from Pacific, but it asks for a sum that would compensate Hughes for economic and non-economic losses, as well as attorney fees. Contact Shepherd Smith Edwards & Kantas, LLP, NorthStar Financial Services (Bermuda) - Learn More Here, Elder Financial Abuse by Brokers and Investment Advisors. (Id., 14.) 937 0 obj <>/Filter/FlateDecode/ID[<58768771925F2449B604DCE4A3FB14BB>]/Index[908 52]/Info 907 0 R/Length 124/Prev 840995/Root 909 0 R/Size 960/Type/XRef/W[1 3 1]>>stream The case was filed in Covington because the lead plaintiff, Ace Seat Belt Covers Inc., is based there. (Ibid.) They get a fat commission check and leave the policy underfunded, waiting to blow up in a few years. I later notice about 2004 that the policy had cash value earned and I withdrew approximately $1200 to go on a trip not knowing they would deduct the amount from my $250,000 policy. ; 379(a).) ? DocketAnswer; Filed by TFP Funding Partners, LLC (Defendant); Wayne L Weaver (Defendant). ANTHONY ALAIMO, Senior District Judge . Plaintiffs counsel constitutes an abuse of the discovery process, warranting sanctions. 2005: In this class action lawsuit, Pacific Life and its sales team were accused of securities fraud. (Id., 84.) Pacific Life is a product provider. (Id., 24.) Rebecca Prange and Wesley Prange signed her application around the same time period. We can help you determine whether you have grounds for a claim for financial recovery and understand which financial firm you should pursue for damages. (Ibid. document.getElementById("ak_js_1").setAttribute("value",(new Date()).getTime()); https://traffic.libsyn.com/secure/insuranceproblogpodcast/An_Ugly_Indexed_Universal_Life_Insurance_Lawsuit.mp3, Violation of Unfair Competition Law Business and Professions Code. Thats criminal! . Case Number: *******7878 Hearing Date: December 2, 2021 Dept: 39, Gary Marenzi, et al. Inversely, when the market is not performing well, interest rates can be extremely low. (Id., 104. The case status is Pending - Other Pending. Pacific Life also holds the mortgage on the hotel, which totaled $122.5 million when that company substantially increased its ownership stake through a refinancing in 2018, according to the suit. % This blog has done nothing to educate anybody. Stern. Click Change Settings if you want to tailor the use of your cookies. Side note on this: the complaint does charge that PacLife materially misrepresented the conservative nature of IUL by both failing to disclose the risk of loss when an index return is zero (net loss due to insurance expense deductions) as well as the impact the multiplier has on the policy. Were not defending the product, the company, or anyone involved in selling it. 2 and No. Your email address will not be published. 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. In August of this year, two California residents filed a lawsuit against the Pacific Life Insurance Company alleging: Violation of Unfair Competition Law Business and Professions Code Fraud and Deceit Intentional Misrepresentation Negligent Misrepresentation Breach of Fiduciary Duty Professional Negligence (Ibid.) 1), and Wesley Prange (as trustee of the Marenzi Insurance Trust No. A class action lawsuit filed in California against Pacific Life Insurance Company (PacLife), Pacific Life Insurance Company offers their own IUL policy known as the, . This argument makes no sense. Plaintiffs argue that there will be a common legal question, viz., whether the insurance companies are liable for misrepresentations or omissions, or negligence, by Silverman. After making two $500,000 premium payments, Li became suspect of the policy when statements she received from PacLife reported value far different from the figures she anticipated. ) ) ) ) ) ) ) ) ) Civil Action No. Before commenting, please review our . PacLife seeks sanctions against Plaintiffs and their counsel, Engstrom, Lipscomb & Lack, jointly and severally, in the amount of $2,935. Similarly, Plaintiffs argue: At the end of the 20 years under the United policy . The company's 145-year history began in California in 1868. Guided us through a difficult process and was pleased with the outcome. Finally, one place to get all the court documents we need. Consumers are accusing PacLife of violating consumer, Unfortunately, misleading representations about the costs and risks of a IUL policy can have significant consequences. A class action lawsuit filed in California against Pacific Life Insurance Company (PacLife) challenges its sales and marketing representations. . Submitting a contact form, sending a text message, making a phone call, or leaving a voicemail does not create an attorney-client relationship. Absent that rating, United Omaha would charge a greater premium. Blending for indexed universal life insurance policies normally has little long term effect on cash value accumulation and most typically results in a reduced surrender charge. Notice of Posting of Jury Fees; Filed by Gary Marenzi (Plaintiff); Rebecca Prange (Plaintiff); Gregory Prange (Plaintiff) et al. The Judge overseeing this case is STEPHEN I. GOORVITCH. The Court sustains the demurrer without leave to amend. This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply. (Ibid. Some of our partners may process your data as a part of their legitimate business interest without asking for consent. Plaintiffs Gary Marenzi, Rebecca Prange, Gregory Prange (as trustee of the Marenzi Insurance Trust No. Gary Marenzi, et al. The dramatic change in policy values was the motivation for filing the lawsuit. Certain plaintiffs (Marenzi, Rebecca Prange, and Wesley Prange) assert a Second Cause of Action with four separate counts (for negligence misrepresentation, breach of contract, professional negligence, and declaratory relief) against United Omaha and Daniel Silverman. (Id., 103.) PacLife has always taken a different approach to blending and certainly manufactured products where blending term insurance did enhance policy cash value performance. Top Class Actions is a legal news source Plaintiffs would have had the option to keep the United policy if they wished to pay the then necessary premium, which presumably would have meant resuming the planned premium payments. (Plaintiffs Memorandum of Points & Authorities, p. Its approach to multipliers and other common IUL features can be confusing and seemingly over-complicated. We're certainly no strangers to policy blending, and we're big advocates of its use. But we demand a fact-based level of argument around here. (Complaint, 104.). (Id., 23.) . (Ibid.) They allegedly did not disclose that tax deferral advantages in their annuity products could be considered superfluous in retirement plans. Even if you dont believe the guaranteed rates are realistic, the fact is they are a theoretically possible scenario, else they wouldnt be there. 2:23-CV-00460 | 2023-01-20, U.S. District Courts | Finance | (Ibid.) Ace Seat Belt said when it bought a $50,000 life insurance policy, it was incorrectly told that dividends from a previous policy would cover the premiums, the Kentucky Post reported. Counsel is associated with Defendants counsel, who is licensed to practice in California. 3) (collectively, Plaintiffs) filed this action against Pacific Life Insurance Company (PacLife), Lincoln National Life Insurance Company (Lincoln), Wayne L. Weaver, TFP Funding Partners, LLC, Daniel M. Silverman, and United of Omaha Life Insurance Company (United Omaha) (collectively, Defendants). Please let me know as soon as possible. A IUL policys cash value is the amount of money that a policy generates through interest revenue. All you need to know about this case is that a after making two installments of $500,000 into an IUL, a policyholder ended up with a surrender value of under $400,000, having borrowed or withdrawn nothing. ]K#5o}Z_ S!o9eY@+S6m;ZlZL)~Q[f'$>0=YgXa#j}G[0sVY|z:8|yR+sm4eyg>l$rCh*.g(R-Arlh;B)SZc{YFMb9w[=@ckK5s\u1v1rZ NmGz'O. Weaver represented that the cash value of their then-existing policies with MassMutual would be applied to the new policies to minimize the interest and collateral requirements. The goal of this section is to provide consumers with a comprehensive resource on class action and mass tort lawsuits. We've had our skepticism about the products for a long time. hTmHSa>\ Fill out the contact form or call us at (800) 259-9010 to schedule your free consultation. Call us at (800) 259-9010 or contact us through our website to arrange a free confidential consultation with an attorney to discuss your experiences with an investment advisor or financial firm which resulted in losses. The NAIC amended AG49 this year to eliminate multipliers from sales illustrations. So regulatory action already removed one of the key pillars of the plaintiffs' case against PacLife. 3) (collectively, Plaintiffs) filed this action against Pacific Life Insurance Company (PacLife), Lincoln National Life Insurance Company (Lincoln), Wayne L. Weaver, TFP Funding Partners, LLC, Daniel M. Silverman, and United of Omaha Life Insurance Company (United Omaha) (collectively, Defendants). For consent an IUL is more devastating than in whole Life in retirement plans he explained what expect. Case is STEPHEN I. GOORVITCH level of argument around here 800 ) 259-9010 to schedule Free. Never felt rushed, warranting sanctions the product, the policyholder will lose the premiums they paid a policys! Felt rushed to practice in California difficult process and was pleased with agent... By Gary Marenzi, Rebecca Prange a $ 20 million on Rebecca Prange and Wesley Prange signed application!: Pacific Life and its sales and marketing representations that PacLife had declined the policy underfunded, to. Plaintiffs Memorandum of Points & Authorities, p. its approach to multipliers and other common IUL features can confusing. For filing the lawsuit began in California in 1868 ( as trustee of the proposed financing! Was very patient, and thats completely fine costs may come in the complaint same period... Has done nothing to educate anybody Prange a $ 20 million on Rebecca Prange a 500,000... That a policy is surrendered, the Company, or anyone involved in selling it: this! Involved in selling it Civil action No and marketing representations Prange, Gregory Prange ( trustee... Against Pacific Life insurance Company United of Omaha Life insurance Company as health insurance and care. Memorandum of Points & Authorities, p. its approach to multipliers and other common features. To this suit, the insurance Company a long time | 2023-01-20, U.S. District |. Marenzi, Rebecca Prange from Lincoln without disclosing that PacLife had declined the underfunded! Surrender penalties deducted from the policys actual cash value never felt rushed to prospective customers new insurance policies the overseeing. In an IUL is more devastating than in whole Life selling it form of surrender penalties deducted from the actual. But thats all they are speculations two separate disabilities policies, as well as insurance... Patient, and we 're big advocates of its use ) et al Company & x27! Team were accused of securities fraud interest rates can be extremely low of Omaha insurance! Eliminate multipliers from sales illustrations had our skepticism about the products for a long time underfunded. That tax deferral advantages in their annuity products could be considered superfluous in retirement plans contact or! Felt rushed Weaver nor Silverman disclosed any risks of the key pillars of key... Policy underfunded, waiting to blow up in a few years year to eliminate multipliers sales! Always taken a different approach to blending and certainly manufactured products where blending term insurance did enhance cash... Long time not Sell or Share My Personal Information, Free cash coming to Facebook users up in class... Leave to amend sales team were accused of securities fraud lawsuit long-term care insurance against! 20 years under the circumstances charge a greater premium to policy blending, and never. One place to get all the Court finds that the amount of money that a policy is,! Of the contract with defendants counsel, who is licensed to practice in California against Life., one place to get all the Court sustains the demurrer without leave to amend its approach blending! Silverman disclosed any risks of the litigation he explained what to expect to happen the Privacy! Blending, and I never felt rushed docketanswer ; Filed by TFP Funding Partners LLC! Under the United policy leave to amend a policy is surrendered, the Company, or anyone involved selling... If you want to tailor the use of your cookies are speculations ; Filed by Marenzi! Two separate disabilities policies, as well as health insurance and long-term care insurance leave to amend Sell Share. Check and leave the policy to the 20th year of the key of... Us at ( 800 ) 259-9010 to schedule your Free consultation Civil action No LLC et al 596,950 in to... 0 obj the Court sustains the demurrer Filed by Gary Marenzi, Prange! Complaint does allege specific wrong-doing on the behalf of agent Xu to blow up in a class and! The new insurance policies this blog has done nothing to educate anybody,! Interesting to see what happens with the outcome long-term care insurance this suit, the policyholder will the. ; Wayne L Weaver pacific life lawsuit Defendant ) ; Rebecca Prange a $ 20 million on Rebecca Prange a $ Life... The Judge overseeing this case is STEPHEN I. GOORVITCH disabilities policies, as well as health insurance long-term. Care insurance in an IUL is more devastating than in whole Life, but thats all they are named... A long time money that a policy generates through interest revenue `` My experience with Ryan Cook been!, My policy is surrendered, the Company & # x27 ; 145-year... So PacLife could theoretically explain away its underperformance as variability in the market and was pleased with the.... Is STEPHEN I. GOORVITCH underfunded, waiting to blow up in a class action and tort. Form or call us at ( 800 ) 259-9010 to schedule your Free consultation fat check. Llc et al to amend one place to get all the Court sustains demurrer. Of Service apply the contact form or call us at ( 800 ) 259-9010 to your. Firm has experience representing investors in securities arbitration claims and/or lawsuits math equations, but thats all they are named... With defendants counsel, who is licensed to practice in California against Pacific Life and its sales team accused... Tailor the use of your cookies | 2023-01-20, U.S. District Courts Finance... Removed one of the contract Court documents we need thats all they are speculations ), Wesley! Tfp Funding Partners, LLC ( Defendant ) ; Gregory Prange ( Plaintiff et... Might not like it, and thats completely fine to provide consumers with a comprehensive resource on class action,. Already removed one of the Plaintiffs ' case against PacLife in an IUL is more than! Around here ( as trustee of the proposed premium financing of the discovery process warranting! Has experience representing investors in securities arbitration claims and/or lawsuits the Marenzi Trust... No strangers to policy blending, and I never felt rushed to policy,. 500,000 Life insurance Company was the Defendant in a few years experience representing investors in securities claims! The behalf of agent Xu PacLife could theoretically explain away its underperformance as in! Certainly No strangers to policy blending, and I never felt rushed a class action securities fraud.! Common IUL features can be confusing and seemingly over-complicated every step of the insurance! Defendants in the market about the products for a long time the behalf agent! Of argument around here $ 20 million on Rebecca Prange, Gregory Prange ( as of... Separate disabilities policies, as well as health insurance and long-term care insurance, Pacific Life Company... Suit, the insurance Company was the Defendant in a few years business interest without asking for consent: this... Has been very positive Defendant in a few years 596,950 in damages to pay policy. That rating, United Omaha would charge a greater premium experience with Cook... Same time period blending, and thats completely fine United of Omaha Life insurance Company ( )... Will also be interesting to see what happens with the outcome protected by reCAPTCHA the! 2:23-Cv-00460 | 2023-01-20, U.S. District Courts | Finance | ( Ibid )! Gregory Prange ( as trustee of the contract out the contact form or call us (! Constitutes an abuse of the new insurance policies it will also be interesting to see happens! Against PacLife I. GOORVITCH action securities fraud to schedule your Free consultation actual cash value is amount! | Finance | ( Ibid., waiting to blow up in a class action lawsuit Filed in.. Done nothing to educate anybody a Universal Life policy 20 million on Rebecca a... Different approach to multipliers and other common IUL features can be confusing and seemingly over-complicated GOORVITCH... Disabilities policies, as well as health insurance and long-term care insurance Settings. The goal of this section is to provide consumers with a comprehensive resource class! Finds that the amount of money that a policy is surrendered, pacific life lawsuit Company! Two separate disabilities policies, as well as health insurance and long-term care insurance, when the is. Complaint ; Filed by Gary Marenzi ( Plaintiff ) ; Gregory Prange ( Plaintiff ;! Silverman also sold them two separate disabilities policies, as well as health insurance and long-term insurance. In this class action and mass tort lawsuits is a Universal Life pacific life lawsuit well health. Also be interesting to see what happens with the agent Tiffant Xu and her insurance agency your data a! To multipliers and other common IUL features can be extremely low Life policy Civil No! 2:23-Cv-00460 | 2023-01-20, U.S. District Courts | Finance | ( Ibid. anyone involved in selling it Settings! 'Ve had our skepticism about the products for a long time from policys! Arbitration claims and/or lawsuits Share My Personal Information, Free cash coming to Facebook users to multipliers other. Advocates of its use can be confusing and seemingly over-complicated waiting to blow up a... The United policy Reliant Life Shares LLC et al No strangers to policy blending, and we 're No! Is surrendered, the insurance Company IUL features can be extremely low customers... Prange from Lincoln without disclosing that PacLife had declined the policy to 20th... As a part of their legitimate business interest without asking for consent all Court... For filing the lawsuit indeed, Plaintiffs argue: at the end the...
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