Phoenix Life Insurance Company Lawsuit
A civil lawsuit filed in federal court accuses a Hartford insurance and annuity company of a scheme to inflate its sales and make millions of dollars for executives. $1.15 billion in Phoenix-issued life insurance policies that were bought on a secondary market as investments. It accuses Phoenix of relaxing its underwriting in order to sell a high volume of life insurance policies, often worth millions of dollars each. The accusations in the lawsuit go further, alleging misconduct related to when policies are treated as investments. Read More.

Universal Life / Insurance Class Action $153,000,000 Class Action Settlement (relief value available through settlement) --
 Robert C. McBride, Individually and in a representative capacity on behalf of a class of all persons similarly situated v. Life Insurance Company of Virginia, d/b/a GE Life and Annuity Assurance Company, United States District Court, Middle District of Georgia, Columbus Division. Butler, Wooten & Fryhofer, LLP served as class counsel in a ground breaking settlement of a nationwide class action against GE Life Assurance and Annuity Company (formerly Life of Virginia) over its universal life insurance policies. The settlement, which was finally approved by Judge Duross Fitzpatrick on August 12, 2004, came nearly four years after the firm first filed suit for Robert and Barbara McBride. For further info please see Universal life insurance class action Blog.

John Hancock Death Benefits Class Action Lawsuit
John Hancock Life Insurance Company is facing a potential class action lawsuit accusing the company of failing to pay out death benefits. The lawsuit comes just four months after the insurer agreed to pay six states $13.3 million to settle allegations it didn’t work hard enough to pay life insurance benefits.For further info please see Hancock Death benefits Class Lawsuit Blog.

Life insurance beneficiary files putative class action lawsuit
A federal class action lawsuit was recently filed in Massachusetts against a leading life insurer targeting claims settlement practices for unclaimed death benefits. See Feingold v. John Hancock Life Ins. Co. (USA), No. 1:13-cv-10185-RBC (D. Mass. Jan. 30, 2013). For further info please see Life Insurance Beneficiary Files Blog.

​Implied Obligation of Good Faith and Fair Dealing Explained is a California Law
but other states have similar laws. This instruction may be used to introduce a “bad-faith” claim arising from an alleged breach of the implied covenant of good faith and fair dealing.   In every insurance policy there is an implied obligation of good faith and fair dealing that neither the insurance company nor the insured will do anything to injure the right of the other party to receive the benefits of the agreement. For further info please see 2330. Implied Obligation of Good Faith and Fair Dealing Blog

One of the most common reasons for life insurance lawsuits are simple errors made by insurance agents. A seemingly small omission can lead to big trouble. These are some recent lawsuits that made big stories. However many lawsuits are actually initiated by insurance companies to avoid paying out death benefits or pay out smaller packages. 

In the News

Sometimes life insurance disputes can become big stories. Here's what's been on people's minds the past few months: 

Federal Class Action suit filed against Met Life of New York 

In the wake of Met Life's suit against being deemed 'too big to fail,'the insurer's New York subsidiary has been hit with a complaint about 'shadow insurance' policies and demands that it reimburse premiums to policy holders. Read the full story here.

Kansas City Woman files class-action lawsuit against Fidelity & Guarantee Life Insurance Co. 

In the suit, she is accusing Fidelity of purposely misleading consumers by moving liabilities into hidden accounts to create aruse of financial stability. The annuity plan sold to her was therefore much riskier than she was initially made to believe and far less valuable. 

Read the full story here. 

Casey Kasem Lawsuit 

Both Kasem's second wife and his children have laid claim to the benefits paid out by his policy with MetLife. Due to Kasem's status as a public figure and the controversy surrounding him at the time of his death, MetLife filed the suit so a judge will determine who receives the payout from his $2 million life insurance policy. Read the full story here. 

 Lawsuit Filed In Suspected Husband-Killer’s $501,000 Life Insurance Policies

An Arkansas woman, Susan Fleck was accused and later found guilty of murdering her husband as he slept. Before her trial, the husband's insurance company filed a lawsuit against her and the administrator of Evan Fleck's estate. The company stated “A genuine brawl exists between a estate of Evan Fleck and Susan Fleck, such that any claims desert to a deduction of a word policies,” in the lawsuit. Read the full story here.

New legislation in Minnesota allows Investors to file lawsuits seeking to validate lawsuits before they mature

In most states, carriers may void life insurance policies for lack of insurable interest at any point, even after the two-year contestability period prescribed by statute. This loophole allows insurers to continue collecting premiums on policies for which they may never pay claims, and, for life settlement investors, creates a risk of a zero return on an otherwise sound investment. Read full story here. 

Man charged in mother's death faces lawsuit from brother over life insurance payout

Jason Hachmeister faced charges for strangling his mother is also facing a lawsuit from his brother over the life insurance payout.Aaron Hachmeister filed the wrongful death petition "to preserve his claims and to avoid the two-year statute of limitations for wrongful death," his attorney, Robert Keeshan, wrote in the lawsuit.
Read the full story here. 


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