Lawsuits
Market America v. Marco Moukhaiber
Market America v. Marco Moukhaiber
- 2023 - LC - Market America v. Marco Moukhaiber --- [BonkNote]
- Case No. 23CVS008058-400 - North Carolina - Case Summary Link
- Location: Guilford Superior Court
- Filed on: 09/18/2023
Annuities – Lawsuits
Annuities - Lawsuits
- Yokoyama v. Midland National Life Ins. Co., 594 F.3d 1087 (9th Cir. 2010)
- https://www.govinfo.gov/content/pkg/USCOURTS-casd-3_08-md-01988/pdf/USCOURTS-casd-3_08-md-01988-4.pdf
- IN RE: COUNTRYWIDE FINANCIAL CORP. MORTGAGE MARKETING AND SALES PRACTICES LITIGATION,
- First, she relies
on Yokoyama v. Midland National Life Ins. Co., 594 F.3d 1087 (9th Cir. 2010). That case involved
a claim under Hawaii’s Deceptive Practices Act, a counterpart to California’s UCL. There, the
plaintiffs alleged that representations in the defendant’s sales and marketing brochures were
misleading and deceptive in that the defendant “represents that its annuities protect its clients from the risks of the stock market and that Midland fails to include in its documentation facts necessary to
inform prospective purchasers of the true risks, possible detriments, and unsuitability of Midland’s
long-term annuities for seniors.” Id. at 1090. The district court denied class certification on the
ground that individual issues of reliance would predominate over any common issues. The Ninth
Circuit disagreed with the district court’s interpretation of Hawaii law, and instead found that reliance
could be shown by an objective, reasonable person standard. Id. at 1093. In light of that legal error,
the Ninth Circuit reversed the district court’s denial of class certification.
Plaintiff likens her case to Yokoyama, specifically that portion of the case that describes the
plaintiff’s claim as one that relies exclusively on written materials. However, there is a critical
distinction between the facts of Yokoyama and the facts of this case: In Yokoyama, the defendant
“obligate[d] its brokers, with respect to each sale, ... to certify that nothing was said that is inconsistent
with Midland’s brochures and disclosure forms.” Id. at 1090. In contrast, Defendants here imposed
no such obligation on their loan officers or the independent brokers. On the contrary, Defendants
assert their brokers and loan officers “provided the supposedly omitted information to each borrower
in oral communications or in other loan documents that varied from borrower to borrower.” (Opp’n
to Mot. at 11) (citations omitted).
- https://www.govinfo.gov/content/pkg/USCOURTS-casd-3_08-md-01988/pdf/USCOURTS-casd-3_08-md-01988-4.pdf
Mamboleo v. Pacific Life Insurance Company
Mamboleo v. Pacific Life Insurance Company
- 2021 - LC - Mamboleo v. Pacific Life Insurance Company --- [BonkNote]
- Case No. 30-2021-01208045-CU-BT-CXC
- Superior Court of the State of California in and for Orange County
- Business Tort
- https://illustrationsettlement.com/documents
- 2 - Plaintiff's Class Action Complaint - 58p
- 50 - Defendant's Answer to Class Action Complaint - 19p
- 259 SEPARATE STATEMENT FILED BY MAMBOLEO, ABIGAIL ON 08/24/2022
- 2026 0224 - InsuranceNewsNet.com - Pacific Life agrees to a $58M settlement in California PDX class action - Mamboleo, by John Hilton - [link]
- 2026 0327 - The And Asset and BetterWealth - The $58.3M Lawsuit That’s Shaking the IUL Industry - Ep. 27 - [VIDEO-YouTube-23:16]
Varacallo v. Massachusetts Mutual Life Insurance Company
Varacallo v. Mass. Mut. Life Ins
- 2000 – LC – Varacallo v. Mass. Mut. Life Ins.
- Co., 752 A. 2d 807 – NJ: Appellate Div. 2000
- 32 N.J. Super. 31 (App. Div. 2000); see also Varacallo v. Massachusetts Mutual 26 Life Ins. Co., 226 F.R.D. 207, 215-16; 233-34 (D.N.J. 2005)
- JULIYAH MUHAMMAD v. COUNTY BANK OF REHOBOTH BEACH, DELAWARE, EASY CASH, TELECASH, AND MAIN STREET SERVICE :
CORPORATION, JOHN DOE, AND JOHN ROE, - SUPREME COURT OF NEW JERSEY DOCKET NO. 58,430
- ON CERTIFICATION TO THE SUPERIOR COURT OF NEW JERSEY : APPELLATE DIVISION Docket No. Below: A-0558-04T3
- JULIYAH MUHAMMAD v. COUNTY BANK OF REHOBOTH BEACH – BRIEF OF AMICUS CURIAE LEGAL SERVICES OF NEW JERSEY – Varacallo v. MassMutual – 45p
- “[S]ince the financial losses of most of the Class Members is relatively small, very few would have an interest or ability to pursue their own individual case. This is demonstrated by the relative absence of policyholder suits now pending–only eight cases pending against MassMutual in the entire United States. . . . Absent class certification, very few individuals would have the incentive or resources to bring individual claims against MassMutual.”)
Huu Nam Tran v. Metropolitan Life Insurance Co.
Huu Nam Tran v. Metropolitan Life Insurance Co.
- 2001 – LC – Huu Nam Tran v. Metropolitan Life Insurance Co.
- Case 2:01-cv-00262-DWA
- Document 88 – Filed 03/10/06 – 5p
- 2005 – LC – Huu Nam Tran v. Metropolitan Life Insurance Co.
- Third Circuit Court of Appeals
- 408 F.3d 130 (3d Cir. Ct. App., May 25, 2005).
- Vanishing Premium, Duty to Read
- 2005 – JIR / NAIC – Abstracts of Significant Cases Bearing on the Regulation of Insurance – 5p
- 2005 – JIR / NAIC – Abstracts of Significant Cases Bearing on the Regulation of Insurance – 5p
- The Third Circuit Court of Appeals reviewed a “vanishing premium” case in Huu Nam Tran v. Metropolitan Life Insurance Co., 408 F.3d 130 (3d Cir. Ct. App., May 25, 2005). Tran alleged that he had been misled by a MetLife agent who indicated that he would only have to pay premiums on his life insurance policy for ten years.
- The policy did not so state, but Tran could not read English.
- The District Court for the Western District of Pennsylvania, the court below, held that Tran had a duty to read the policy or have it read to him and that the policy language was clear and unambiguous.
- The Court of Appeals said that no such duty existed in Pennsylvania law and also noted that the policy language was subject to interpretation, so even if Tran had read it, he might not have understood that his premiums would not “vanish.”
- The Appeals Court ruled that genuine issues of fact existed in this case, so summary judgment for the insurer was not appropriate. This case is more appropriate for resolution by a jury than by a judge.
2008 0413 – Dateline – Tricks of the trade – A Dateline hidden camera investigation to see what insurance agents say — and – what they don’t — when they think they are alone with a senior
2008 0413 – Date – Tricks of the trade – A Dateline hidden camera investigation to see what insurance agents say — and – what they don’t — when they think they are alone with a senior
- 2008 0413 – Dateline – Tricks of the trade – A Dateline hidden camera investigation to see what insurance agents say — and – what they don’t — when they think they are alone with a senior – nbcnews.com/id/wbna24095230 – <WishList-VIDEO> — [BonkNote]
- 2008 0414 – NASAA – NASAA Commends Dateline NBC for Helping Expose Questionable Equity Indexed Annuity Sales Practices to Seniors – [link]
- 2008 0420 – ThinkAdvisor – Industry Protests ‘Dateline’ Broadcast On Annuity Sales Practices To Seniors, By Trevor Thomas – [link]
- 2009 0402 – InsuranceNewsNet – Brokers’ Choice Of America And Tyrone Clark Sue NBC And GE On Dateline ‘Tricks Of The Trade’ Program – [link]
- 2015 – LC – Brokers’ Choice of America and Tyrone M. Clark v. NBC UNIVERSAL – Court of Appeals, Tenth Circuit – No. 15-1386
- 2008 0413 – Tricks of the trade – A Dateline hidden camera investigation to see what insurance agents say — and – what they don’t — when they think they are alone with a senior – nbcnews.com/id/wbna24095230 – <WishList-VIDEO>
- Decided: June 28, 2017
- 2008 0413 – Tricks of the trade – A Dateline hidden camera investigation to see what insurance agents say — and – what they don’t — when they think they are alone with a senior – nbcnews.com/id/wbna24095230 – <WishList-VIDEO>
- 2008 0107 – insurance-forums.com – Broker’s Choice/Tyrone Clark Go Bye-Bye? – insurance-forums.com/community/threads/brokers-choice-tyrone-clark-go-bye-bye.3595/
Walker vs. LSW – Life Insurance Company of the Southwest – Index
Walker vs. LSW – Life Insurance Company of the Southwest – Index
A
C
D
- Death Benefit Need and Life Insurance – Walker vs. LSW
- Deceptive Illustrations – Walker vs. LSW
- Defective – Lapse Prone – Walker vs. LSW
- Depositions – Walker vs. LSW
- Document – Snippets – Walker vs. LSW
- DOC 264 – DECLARATION of Elizabeth MacGowan – Walker vs. LSW
- DOC 810 – Trial Transcript – Day 7 – Walker vs. LSW – 260p
- Doug Andrew – Walker vs. LSW
- Duty to Disclose – Walker vs. LSW
- Duty to Read – Walker vs. LSW
E
F
H
I
L
M
O
Q
S
T
W
#
- 2011 1107 – DOC 748-2 – Deposition of Donna Morgan – Walker vs. LSW – 46p
- 2012 0910 – DOC 245 – Declaration of Dr. Patrick Brocket – Walker vs. LSW – 73p
- 2013 1211 – DOC 735-2 – Deposition of Michael Tivilini – Walker vs. LSW – 215p
- 2014 0415 – DOC 808 – Trial Transcript – Day 5 – Walker vs. LSW – 229p
- 2014 0416 – DOC 809 – Trial Transcript – Day 6 – Walker vs. LSW – 236p
- 2014 0423 – DOC 812 – Trial Transcript – Day 10 – Walker vs. LSW – 194p
- 2014 0424 – Document 820 – Trial Transcript – Day 11 – Walker vs. LSW – 279p
- 2014 0425 – DOC 813 – Trial Transcript – Day 12 – Walker vs. LSW – 224p
- 2015 0415 – DOC 791 – Order Regarding Post-Jury Trial UCL Proceedings – Walker vs. LSW – 75p
Lawsuits – Index
Lawsuits - Index
A
- ACLI v. Perez (DOL – Department of Labor) – Fiduciary Rule
- ACLI – American Council of Life Insurers – Amicus Briefs
- ACLI – Lawsuits
- Aetna v. Wisconsin Insurance Commissioner
- Agents vs. Companies
- AIG – Lawsuits
- AIG – Securities Lending – Lawsuits
- Alabama – Lawsuits
- Always Marco – Lawsuits – Index
- American International Group, Inc. 2008 Securities Litigation
- Amicus Curiae Briefs
- Annuities – Lawsuits
- anti-SLAPP – Strategic Lawsuits Against Public Participation
- Ashmore v. Paramount Financial Services Inc – FIP – Doug Andrew
- A.L. Williams – Lawsuits
B
C
- Canada – Lawsuits
- Christopher Coyle
- Church
- Ciofoletti v. Securian
- Class Actions
- Class Action Settlements
- Common Sense
- Companies vs. Agents
- Complaints
- Compulife v. Rustein
- Costigan v. John Hancock
- Court of Appeals
- Cowboy Athletics v. Lincoln National Life Insurance Company
- Crown Life v. Casteel – 98-0218
D
F
- Fairbanks v. Farmers New World Life
- Fair Consumer Outcomes
- Fatally Flawed
- Fay v. Aetna
- Fehr v. Sun Life Assurance Company of Canada
- Feller v. Transamerica
- Ferguson v. Crown Life and William Casteel – Index
- Ferguson v. Crown Life / Casteel – 91-11537
- FFL – Family First Life Lawsuit Witnesses – VIDEOS
- FFL – Family First Life – Lawsuits
- FIP – Future Income Payments
G
I
K
L
M
- Maloof v. John Hancock
- Mamboleo v. Pacific Life Insurance Company
- Marie v. Pacific Life Insurance Company
- Market America v. Marco Moukhaiber
- MDL – Multidistrict Litigation
- MDL-1061 – LC – Prudential Insurance Company of America Sales Practices Litigation
- MDL-1091 – LC – Metropolitan Life Insurance Company Sales Practices Litigation
- MDL-1096 – LC – Crown Life Insurance Company Premium Litigation
- MDL-1102 – LC – Sun Life Assurance Company of Canada Sales Practices Litigation
- MDL-1143 – LC – Mutual Life Insurance Company of New York Premium Litigation – MONY
- MDL-1179 – LC – General American Life Insurance Company Sales Practices Litigation
- MDL-1950 – LC – Municipal Derivatives Antitrust Litigation
- MDL-581 – LC – Baldwin-United
- MDL-634 – LC – Academy Life Insurance Company Estate Conservation Plan Litigation
- Media – Lawsuits
- MetLife v. FSOC (Financial Stability Oversight Council)
- MetLife – Lawsuits
- Mosten Investments v. The Manufacturers Life Insurance Company – Manulife Financial
- Murder
N
P
- Paul v. Virginia
- PIABA – Public Investors Advocate Bar Association
- Premiums, Costs, Values and Benefits – Lawsuits
- Primerica vs. Marco Moukhaiber – [Always Marco]
- Primerica – Lawsuits
- Private Right of Action
- Problem – Class Action Litigation
- Prudential Insurance Company – Lawsuits
- Pyramid Scheme – Lawsuits
S
- SEC – Securities and Exchange Commission – Lawsuits
- Signature
- Starr International Company
- Starr International Company v. Federal Reserve Bank of New York and American International Group – 12-5022
- Starr International Company v. United States – 11-0779
- Starr International Company v. United States – 15-5103 – Appeals Court
- States – Lawsuits
- Supreme Court
T
W
- Walker vs. LSW – Life Insurance Company of the Southwest
- Walker vs. LSW – Life Insurance Company of the Southwest – Index
- Walker vs. LSW – Life Insurance Company of the Southwest – Wishlist
- Walker vs. LSW – Snippets
- WFG – World Financial Group – Lawsuits
- Williams v. National Western Life Insurance
- Witness
- Woodbridge
#
- 1997 1030 – GOV (Senate) – Class Action Lawsuits: Examining Victim Compensation and Attorneys’ Fees – Charles Grassley (R-IA)
- 1999 0914 – GOV (House-Report) – Interstate Class Action Jurisdiction Act of 1999 – 47p
- 2001 – LC – Solarchick v. Metropolitan Life
- 2008 0413 – Dateline – Tricks of the trade – A Dateline hidden camera investigation to see what insurance agents say — and – what they don’t — when they think they are alone with a senior
- 2010 – LC – Sun Life Assurance Company of Canada v. Metropolitan Life Insurance Company
- 2010 – LC – Sun Life Assurance Company of Canada v. Metropolitan Life Insurance Company – Judgement – Ontario – Superior Court – 8p
- 2011-2014 – LC – Cressy v. Doug Andrew – OM Financial Life Insurance Company – Fidelity & Guaranty Life
- 2013 0905 – LC – Johnston & Johnston v. Conseco – 5th Circuit Court of Appeals – 13-30010 – Oral Argument – mp3
- 2014 0605 – LC – Eddie Cressy v. Fidelity & Guaranty Life Insurance Company, Paramount Financial Services and Doug Andrew – BC514340
- 2015 – LC – Charles Oliver v. Burgess (CFLID – Center for Life Insurance Disputes)
- 2017 – LC – Chamber of Commerce v. U.S. Department of Labor (DOL) – 17-10238
- 2018 0905 – LC – Fehr v. Sun Life Assurance Company of Canada – Decision – Ontario – Court of Appeal – 73p
- 2019 – LC – Mosten Investment v. Manufacturers Life – Queen’s Bench for Saskatchewan
- 2020 0129 – SEC – In the Matter of Paramount Financial Services, dba Live Abundant – [Doug Andrew] – [Woodbridge] – Release No. 88070 – Administrative Proceeding – File No. 3-19680
- 2021 – LC – Mosten Investments v. Manufacturers Life – Court of Appeal
- 2023 – LC – Eric Olson v. World Financial Group Insurance – WFG
- 2025 0624 – LIFE180 – Interview With IUL Litigation Attorney LIVE – [Robert Rikard] – [VIDEO-YouTube-01:19:10]
- McHugh v. Protective Life Insurance Company
- Varacallo v. Massachusetts Mutual Life Insurance Company
Nurses Insured Retirement Plan – Metropolitan Life
Nurses Insured Retirement Plan – Metropolitan Life
- Nurses Insured Retirement Plan – Metropolitan Life — [BonkNote]
- 2003 – LC – Brenda Loguidice v. Metropolitan Life Insurance Company and Steven Anastasia
- 02-2538.
- US Court of Appeals for the First Circuit – 336 F.3d 1 (1st Cir. 2003)
- Heard May 9, 2003, Decided July 14, 2003
- law.justia.com/cases/federal/appellate-courts/F3/336/1/468803/
- If the facts alleged are true, the defendants’ sales tactics were shameful. But Loguidice failed to press any viable claims she might have had as a result of these tactics until after the relevant statute(s) of limitations had run. Because the discovery rule does not save Loguidice’s claims, we affirm the judgment that was entered for defendants.
- 1994 0116 – Bloomberg – Policies Of Deception?, By Suzanne Woolley and Gail Degeorge – [link]
- 1996 – LR – Derivative Actions by Policyholders on Behalf of Mutual Insurance Companies, by Theodore Allegaert – 36p
- During the years 1990 through 1993, several of the largest domestic mutual insurance companies engaged in deceptive marketing and sales practices in their efforts to increase sales of their life insurance products.
- They sought to tap the mutual fund and savings bank markets by inducing individuals in specifically identified occupations who were likely to possess investment capital, but not investment acumen, to buy life insurance policies as “investment” or “retirement” plans.1 In doing so, agents styled themselves investment specialists, assiduously avoided using the word “insurance,” and reaped a bonanza in commissions.2 Such misleading sales practices, however, were patently in violation of state consumer protection laws and insurance disclosure rules imposed by state insurance regulators.3
- 1 See Michael Quint, New Refunds for Misled MetLife Customers, NY Times D1, D1 (Dec 28, 1993) (discussing the Metropolitan Life Insurance Company’s involvement in such practices); – [link]
- Suzanne Woolley and Gail DeGeorge, Policies of Deception? Investigations of Misleading Sales Tactics Rock the Insurance Industry, Bus Week 24, 24-25 (Jan 17, 1994) (“Insurance agents [are] competing with banks, mutual funds and others.”).
- 2 See Greg Steinmetz, Florida Widens Insurance-Sales Probe To New York Life, Possibly Prudential, Wal St J A3, A3 (Dec 29, 1993). These commissions can be up to twenty-seven times higher for whole life insurance policies than for more investment-like products such as annuity contracts. See Woolley and DeGeorge, Policies of Deception?, Bus Week at 24-25 (cited in note 1). – <WishList>
- 3 Steinmetz, Florida Widens Insurance-Sales Probe, Wal St J at A3 (cited in note 2);
- Greg Steinmetz, Met Life Got Caught; Others Sent Same Letter, Wall St J B1, B1 (Jan 6, 1994).
- 1 See Michael Quint, New Refunds for Misled MetLife Customers, NY Times D1, D1 (Dec 28, 1993) (discussing the Metropolitan Life Insurance Company’s involvement in such practices); – [link]
Kyle Busch vs. Pacific Life Insurance Company – ADD
Kyle Busch vs. Pacific Life Insurance Company - ADD
- 2025 - LC - Kyle Busch vs. Pacific Life Insurance Company - 5:25-cv-00195 --- [BonkNote]
- Plaintiffs - Kyle Busch, Individually and as Trustee for the Samantha Lynn Busch Irrevocable Life Insurance Trust; and Samantha Busch, Individually and as Trustee for the Kyle T. Busch Irrevocable Life Insurance Trust
- Counsel for Plaintiffs - RP LEGAL, LLC, Robert G. Rikard
- Defendants - Pacific Life Insurance Company, Rodney A. Smith, and Red River LLC
1800s
- 1896 - Ratebook - Premium Rates, Guarantees and Illustrations of Policies - New York Life Insurance Company - 240p
- In the use of these illustrations, agents must carefully discriminate between what is guaranteed in the policy, and what is only a possibility... (p42 of 240)
1900-1950
- 1907-0, NAIC Proceedings
- "Deceptive Insurance Methods --The Cure", By Mr. E. E. Rittenhouse (Insurance Commissioner of Colorado) - (p215-228)
- In guarding the public against insolvent insurance companies state supervision has been eminently successful.
- In protecting the people against frauds, impositions and abuses by solvent companies it has been only partially successful.
1960s
- 1961 - Book - Modern Life Insurance, by Robert I. Mehr
- .. in gaining a life insurance education, one problem does present itself... the basic question is where to begin. (p1)
1970s
- 1979 - SOA - Cost Disclosure, rsa79v5n45 - Society of Actuaries - 18p
- Jack E. Bobo, NALU, National Association of Life Underwriters [Currently NAIFA], Executive Vice President - The findings and conclusions, and this Is the part that created the explosion, were that there is a shortfall of information, particularly with respect to ordinary life and that consumer experience does suggest that the consumer Is not able to adequately determine the suitability of the product, the quality of the product, or the cost of the product.
- As a consequence, consumers are sustaining losses, and this would be a definite Indication of a market failure.
- [Bonk: re 1978 12 - GOV (House - Report) - Life Insurance Marketing and Cost Disclosure Report Together with Dissenting Views, John Moss (D-CA) --- [BonkNote] --- [PDF-109p]
- Jack E. Bobo, NALU, National Association of Life Underwriters [Currently NAIFA], Executive Vice President - The findings and conclusions, and this Is the part that created the explosion, were that there is a shortfall of information, particularly with respect to ordinary life and that consumer experience does suggest that the consumer Is not able to adequately determine the suitability of the product, the quality of the product, or the cost of the product.
- 1979 1011 and 1022 - GOV (House) - Small Business Problems with Insurance - Part 1, John LaFalce (D-NY) --- [BonkNote]
- Chairman John LaFalce (D-NY) - During the course of....we ascertained that there were very few people within the Federal Government with an understanding of the insurance industry.
- A staff memo...stated: "It appears that for many years the workings of the life insurance business have been misunderstood by those at the [Internal Revenue Service and Justice Department] associated with the question."
- Chairman John LaFalce (D-NY) - During the course of....we ascertained that there were very few people within the Federal Government with an understanding of the insurance industry.
1980s
- 1981 0921 - GOV (House) - Insurance Agent Commission Deregulation - [PDF-109p-GooglePlay, VIDEO-?] ->Not on govinfo.gov, Committee on Small Business - Subcommittee on General Oversight
- Susan Mitchell, Wisconsin Commissioner of Insurance: So I think that the NAIC is going to have to relook at the whole issue of life cost disclosure.
- It is an issue that will not go away.
- ⇒ As long as the internal benefits of a policy are not reflected in the premium, people need help in measuring those benefits.
- ⇒ That is, in a nutshell, what cost disclosure systems have tried to do. (p10-11)
- Susan Mitchell, Wisconsin Commissioner of Insurance: So I think that the NAIC is going to have to relook at the whole issue of life cost disclosure.
- 1981 - SOA - The Future of Permanent Life Insurance, rsa81v7n36 -Society of Actuaries - 22p
- Stanley B. Tulin - The Wall Street Journal, in a back page article several weeks ago, discussed Universal Life Products, Variable Life and traditional permanent insurance - both participating and non-participating. <WishList>
- The Journal's comparisons showed the Universal and Variable Life products to great advantage.
- Of course, a critical aspect of the illustrations - for both Universal and Variable - is the assumed rate of interest.
- The Wall Street Journal article assumed a rate of approximately 11% for the Universal Life and Variable Life illustrations.
- The Journal's comparisons showed the Universal and Variable Life products to great advantage.
- Stanley B. Tulin - The Wall Street Journal, in a back page article several weeks ago, discussed Universal Life Products, Variable Life and traditional permanent insurance - both participating and non-participating. <WishList>
- 1983 - SOA - Individual Life Insurance Retention and Replacement Strategies, rsa83v9n417 - Society of Actuaries - 24p
- Phillip B. Norton, not a member of the Society, is Vice President of The Lincoln National Life Insurance Company - We designed commission rules that anticipated a relatively large number of rollovers of existing policies;.
- ...full commissions are paid provided the new Universal Life face amount is at least two times the face amount of the replaced policy..
- Phillip B. Norton, not a member of the Society, is Vice President of The Lincoln National Life Insurance Company - We designed commission rules that anticipated a relatively large number of rollovers of existing policies;.
- 1985 0719 Impact of Tax Reform on Insurance Industry, Pete Stark (D-CA) --- [BonkNote]
- Robert Beck, Prudential, Chairman and Chief Executive Office
- [RE: Vanishing Premium]
- (p6069) - Under some permanent insurance, contracts being sold today, the chances are you could stop paying after 7, 8, or 9 years and the insurance would remain in force for the rest of your life without further premium payments.
- (at approx. 2:27:00-2:27:30) - [VIDEO-CSPAN] - Impact of Tax Reform on Insurance Industry
- Robert Beck, Prudential, Chairman and Chief Executive Office
- 1988 0325 - GOV (Senate) - Tax Treatment of Single-Premium Life Insurance, (CSPAN) Single Premium Life Insurance, Max Baucus (D-MT) --- [BonkNote]
- Gordon G. Oakes, Monarch, Chairman of the Board and President - (p105) - One whole life insurance brochure used by our agents in 1975, entitled the "Four in One Plan", does not mention insurance on either cover. - <WishList>
- The back cover lists it benefits as, "retirement income, immediate estate, emergencies opportunities and self-completing if totally disabled.
- Life insurance is only mentioned two places in the brochure, and odds are, if it could legally have been eliminated from the discussion, it would have been.
- The words "death benefit" appear nowhere.
- Advertising life insurance as a savings plan is nothing new.
- The back cover lists it benefits as, "retirement income, immediate estate, emergencies opportunities and self-completing if totally disabled.
- Gordon G. Oakes, Monarch, Chairman of the Board and President - (p105) - One whole life insurance brochure used by our agents in 1975, entitled the "Four in One Plan", does not mention insurance on either cover. - <WishList>
1990s
- 1993-2, NAIC Proceedings
- NCOIL to State Insurance Departments
- Tony Higgins (N.C.) referred the group to a resolution of the National Conference of Insurance Legislators (NCOIL) urging state insurance departments to become aware of disclosure and abuse issues in life insurance solicitation (Attachment Six-A2).
- 1993 0525 - GOV (Senate) - When Will Policyholders Be Given The Truth About Life Insurance?, Howard Metzenbaum (D-OH) --- [BonkNote]
- (p4) - Statement of Hon. Charles E. Grassley (R-IA), A U.S. Senator From The State of Iowa
- I share Senator Metzenbaum's desire to ensure that insurance consumers have a thorough understanding of the obligations and performances that they can expect from a prospective life insurance policy, so that they can make fully informed purchase and investment decisions.
- (p4) - Statement of Hon. Charles E. Grassley (R-IA), A U.S. Senator From The State of Iowa
- 1993-4, NAIC Proceedings - Tony Higgins Insurance Regulator (NC) - agreed that there was a problem with lack of education of the agents.
- 1993-4, NAIC Proceedings - LDWG - Life Disclosure Working Group - NAIC
- The working group's concern was how to bring about a change without damage to the market place.
- 1993 - SOA - Sales Illustrations - We Can't Live With Them, But We Can't Live Without Them!, rsa93v19n22 - Society of Actuaries - 28p
- ACLI - Bruce E. Booker, (a member of the American Council of Life Insurance (ACLI) Task Force on Cost Disclosure and the National Association of Insurance Commissioners (NAIC) Advisory Group on Illustrations
- Actuaries can do lots of things.
- We can provide the field with a clear description of the policy and how it works.
- Robert Nelson, Chairperson of the National Association of Life Underwriters (NALU) Task Force on Illustrations - [Currently NAIFA]
- I sincerely believe we have a flawed instrument in today's sales illustrations.
- ...we did not communicate the impact of change as well as ...we should have.
- Our biggest mistake would be to delay.
- I don't believe the consumer will tolerate or forgive us, let alone the regulators, if we do nothing.
- ACLI - Bruce E. Booker, (a member of the American Council of Life Insurance (ACLI) Task Force on Cost Disclosure and the National Association of Insurance Commissioners (NAIC) Advisory Group on Illustrations
- 1994 - SOA - Problems and Solutions for Product Illustrations, rsa94v20n229 - Society of Actuaries - 28p
- George Coleman, Prudential, ACLI, TRG-Technical Resource Group for the NAIC (Industry Advisory Group - Illustrations)
- It is these concepts or the uses of the products and not the illustrations that are the difficulties here.
- I think you have to catch people's attention, and that is all to the good.
- George Coleman, Prudential, ACLI, TRG-Technical Resource Group for the NAIC (Industry Advisory Group - Illustrations)
- 1994-1, NAIC Proceedings - NALU [NAIFA]
- 13. The Cover Page for any illustration should contain the annual premium necessary to maintain the policy to maturity based solely upon the guarantees in the policy. This will assist the policyowner in understanding the differences between guaranteed and non-guaranteed policy features.
- 1994-1, NAIC Proceedings.
- FROM: Chris Kite, FIPSCO, DATE: February 22, 1994, RE: Corrections to 1-27-94 Proposal for NAIC Life Insurance Illustration Model Act
- The Target Premium is $3,360.00.
- The TAMRA Premium is $18,630.63.
- The Guideline Level Premium is $6,058.33.
- The Guideline Single Premium is $66,962.64
- FROM: Chris Kite, FIPSCO, DATE: February 22, 1994, RE: Corrections to 1-27-94 Proposal for NAIC Life Insurance Illustration Model Act
- 1995 - SOA - Practical Illustrations and Nonforfeiture Values, rsa95v21n123 - Society of Actuaries - 14p
- Linda M. Lankowski - I think any way that we can make illustrations more understandable to the public is certainly going to help us.
- We've seen the problems that have occurred when Senator Howard Metzenbaum (D-OH) was given an illustration with a vanishing premium, and he had absolutely no idea that he had bought a policy that was not paid up in four years.
- It caused many problems for the industry; it caused many problems because the press got involved, and the press doesn't understand the products as well as it thinks it does.
- Susan Oberman Smith: I think that one problem, even with the illustration disclosure, is that you are still not controlling what the agent actually says to the client, even when he or she sees that illustration.
- I've been in many situations where our agent says, "I sold them a ten-pay contract and it was paid up in ten years," and I say, "It's not paid up."
- I don't know how you can handle the idea of the agent telling somebody that it's a paid-up contract when it really was a vanishing-premium-concept contract.
- Linda M. Lankowski - I think any way that we can make illustrations more understandable to the public is certainly going to help us.
- 1997 1024 - WSJ - MONY Wins Dismissal of Suit Over 'Vanishing Premium' Policies, by Leslie Scism - [link]
- ... in the MONY case, New York state judge Beatrice Shainswit found that, while thousands of consumers nationally "have been deeply aggrieved by what they perceive to be a grave injustice perpetrated upon them by the numerous insurance companies who contrived, and profited, from the "vanishing premium" concept," this "ill-conceived product" doesn't necessarily "equate to fraud, or any other actionable wrongdoing, which can be compensated for in a court of law."
- ⇒ Her 29-page decision debunks key arguments in almost all of the suits. - <WishList>
- ... in the MONY case, New York state judge Beatrice Shainswit found that, while thousands of consumers nationally "have been deeply aggrieved by what they perceive to be a grave injustice perpetrated upon them by the numerous insurance companies who contrived, and profited, from the "vanishing premium" concept," this "ill-conceived product" doesn't necessarily "equate to fraud, or any other actionable wrongdoing, which can be compensated for in a court of law."
- 1998 / 2003 - Report of the Metropolitan Life Insurance Companies located in New York, New York as of December 31, 1998. By Examiners of the State of New Jersey Department of Banking and Insurance Division of Enforcement and Consumer Protection Market Conduct Examination Unit - 44p
- In its June 7, 1994 Consent Order #94-102, the NJDBI cited N.J.S.A. 17B:30-3 and N.J.A.C. 11:2-23.4 and subsequently fined MetLife $965,555 for MetLife's practice of misrepresenting life insurance to be retirement or savings plans, particularly in advertisements sent to nurses and other professionals.
2000s
- 2001 - Lawsuit - Solarchick v. Metropolitan Life --- [BonkNote]
- 42-1 - Exhibit A - 1993 1227 - Pennsylvania Market Conduct Examinations of Metropolitan Life Insurance Company - Filed 04/17/06 - 46p
- 42-2 - EXHIBIT A - CONT'D - 39p
- 42-3 - EXHIBIT A - CONT'D - 42p
- p10 - 50/50 Plan
- p18 - Nurses Insured Retirement Plan: (see pages 98-99}
- Nurses Guaranteed Retirement
- p30 - TELEMARKETING SCRIPT USED FOR THE TAX-ADVANTAGED BONUS PLAN
- In a Nutshell: With IRS intruding on almost all forms of retirement plans will there be any true Tax-Free Retirement income vehicles left for the small business owner?
- What would you say if we could show you how to have Tax-Free Retirement income with no-out-of pocket expenses to you?
- p31 - This plan is tailored as Tax-Free Retirement income plan but does provide an outstanding tax-free death benefit should you pass away prior to retirement, its the best of both worlds. In addition it may be one or the last true tax-free retirement income vehicles.
- 42-1 - Exhibit A - 1993 1227 - Pennsylvania Market Conduct Examinations of Metropolitan Life Insurance Company - Filed 04/17/06 - 46p
- 2003 0203 - LC - Fay v. Aetna - Doc 65 - Defendant Aetna Life Insurance And Annuity Company's Response To Plaintiffs' Separate Statement of Additional Undisputed Material Facts - 01-cv-10846 - 32p
- 20. Aetna does not dispute that Mr. Pflugfelder described the Policies as "permanent insurance."
- He did so correctly, as Plaintiffs concede.
- 21. Aetna does not dispute this paragraph, but adds that Plaintiffs never asked what the term "permanent insurance" means. - Page 6 of 32
- 20. Aetna does not dispute that Mr. Pflugfelder described the Policies as "permanent insurance."
- 2008-3, NAIC Proc.
- Legal Actions
- Monitoring of litigation may alert regulators to issues that the regulatory system has not yet addressed.
2010s
- 2010 0212 - WSJ - University and Pickens Sue Over Fund-Raising Plan, by Stephanie Storm - [link]
- Mr. Pickens and Cowboy Athletics, a fund-raising arm of the university, contend that the Lincoln National Life Insurance Company understated the costs of the program, overstated its potential financial benefits and charged the university inflated premiums, among other things.
- 2011 0914 - GOV (Senate-Banking/SII) - Emerging Issues in Insurance Regulation, Jack Reed (D-RI) --- [BonkNote] --- [PDF-51p, VIDEO-Senate]
- (p9) / 00:44:00 - Daniel Schwarcz, Associate Professor, University of Minnesota Law School
- The failure of State regulators to provide consumers with sufficient information extends to life insurance markets as well.
- Perhaps the most notable example is that consumers have virtually no means of comparing prices or costs for the cash value life insurance products that different companies offer.
- When combined with skewed-and nondisclosed-salesperson incentives, this too has produced distressing results.
- The failure of State regulators to provide consumers with sufficient information extends to life insurance markets as well.
- (p9) / 00:44:00 - Daniel Schwarcz, Associate Professor, University of Minnesota Law School
- 2014 1218 - Lawsuit - MetLife v. FSOC - D85-2, 85-2 - 15-cv-45 - Explanation of the Basis of the Financial Stability Oversight Council's Final Determination that Material Financial Distress at MetLife Could Pose a Threat to U.S. Financial Stability and that MetLife Should be Supervised by the Board of Governors of the Federal Reserve System and Be Subject to Prudential Standards --- [BonkNote] --- 387p
- (p172) - [LIRP - Life Insurance Retirement Plan / Life Insurance Policy as Investment / Savings]
- (p172) - Many life insurance and annuity products are purchased not only to pay death benefits in the event of the death of the insured, but also as a long-term investment vehicle to accumulate assets for savings or retirement.
- If policyholders were to lose confidence in the ability of MetLife's insurers to satisfy their obligations, they may prefer to bear the costs of surrendering their policies instead of risking potentially larger losses.
- (p171) - MetLife markets this "tax-free" withdrawal strategy across various insurance products that accumulate cash value.823
- 823 - For example, MetLife marketing material states that cash value life insurance can "Provide a smart way to save through its cash value. This is money that can be used for college, emergencies or during retirement without tax implications." See MetLife, "Life Insurance as an Asset," (2012)
- 2012 - MetLife - Life Insurance as an Asset - 14p
- (p172) - [Policy Loans] - Moreover, if policyholders wanted to keep their life insurance policies in effect, they could take out policy loans, which could also subject MetLife to a liquidity strain.
- (p172) - [LIRP - Life Insurance Retirement Plan / Life Insurance Policy as Investment / Savings]
- 2018 - Book - Statutory Valuation of Individual Life and Annuity Contracts | 5th Edition -- by Donna Claire, Lombardi and Summers --- [BonkNote]
- The typical "present value of future benefits less the present value of future net premiums" formula is challenging to apply to flexible premium universal life policies...
- ...since neither "future premiums" nor "future benefits" are known for any particular policy.
2020s
- 2024 0215 - GOV (House) - Protecting American Savers and Retirees from DOL's Regulatory Overreach, Bob Good (R-VA)
- PIABA - Joseph C. Peiffer, President, Public Investors Advocate Bar Association - 30p
- First, I'd like to talk about a group of approximately hundreds of investors across the country that myself along with Rikard & Protopapis represented. Our clients lived in in California, Utah, Illinois, Missouri, Kansas, Texas, South Carolina, North Carolina, Louisiana, Florida, Ohio, Arizona and Idaho. But, these investors exist all over the country.
- IRA Reboot, FIP - Future Income Payments,
- PIABA - Joseph C. Peiffer, President, Public Investors Advocate Bar Association - 30p
- 2025 - Richard Weber and Chris Kite