Transamerica Settles Class-Action Suit Worth Up to $88 Million in Credits

By Timothy Darragh, BEST WIRE

April 8, 2020

Transamerica Life Insurance Co. has agreed to settle a class-action lawsuit filed by policyholders who alleged it improperly increased monthly charges on their universal life insurance policies.

According to the settlement agreement in U.S. District Court in Los Angeles, Transamerica will pay up to $88 million in account value credits to policies in effect and those for which death claims were pending as of Dec. 31, 2019.

Transamerica Settles Lawsuit Concerning Increases in “Cost of Insurance” Charges

Los Angeles, CA – Transamerica Life Insurance Company has agreed to settle a class action lawsuit brought on behalf of policyholders across the United States alleging that Transamerica improperly increased themonthly charges that the company withdrew from the accounts of policyholders who own“TransUltra 115 98/99” or “TransSurvivor 115 97/98/99” “universal life” insurance policies.Transamerica increased the monthly deduction charges on those policies in October 2017 and June 2018, respectively.