USAA Cost of Insurance $90M Class Action Settlement

Certain current and former USAA Life policyholders may be eligible to receive a payment of at least $50 as part of a $90 million class action settlement resolving complaints about the company’s Universal Life policies.

The Class in the USAA settlement includes anyone who owns or owned Universal Life 1, Universal Life 2, Universal Life 3, and/or Universal Life 4 life insurance policies issued or administered by USAA Life, or its predecessors in interest, that were in force on or after March 1, 1999, subject to certain important exclusions. The estates of deceased individuals who would have been Class Members also are considered part of the Class.

A class action lawsuit argued USAA Life’s “cost of insurance” charges violated the policies in several ways, including basing the cost of insurance rates on impermissible factors and exceeding the fist amounts of maintenance, administrative, and expense charges. 

USAA provides banking, insurance, loans, and other financial services to current and former military members and their families.

USAA denies the claims against it, but has agreed to the settlement in order to avoid the risks and costs associated with continuing litigation.

The Court has not ruled in favor of either party.

If the Court approves the USAA cost of insurance settlement, Class Members will receive a check in an amount to be determined by the settlement administrator.

Each Class Member will receive a proportionate share of the USAA settlement fund after attorneys’ fees and other expenses have been paid.

The minimum payment a Class Member will receive is $50.

It is recommended that Class Members consult their tax advisers about the tax-related consequences of the proposed settlement.

A final fairness hearing in the USAA cost of insurance settlement is scheduled for Aug. 26, 2021.

The deadline to opt out of or object to the USAA settlement is Aug. 5, 2021.

Class Members do not need to file a claim in order to receive the benefits of this settlement.

Who’s Eligible

Anyone who owns or owned Universal Life 1, Universal Life 2, Universal Life 3, and/or Universal Life 4 life insurance policies issued or administered by USAA Life, or its predecessors in interest, that were in force on or after March 1, 1999, subject to certain important exclusions. The estates of deceased individuals who would have been Class Members also are considered part of the Class.

Potential Award

At least $50.

Each Class Member will receive a proportionate share of the settlement fund after attorneys’ fees and other expenses have been paid.

The minimum payment a Class Member will receive is $50.

Proof of Purchase

No proof of purchase is required.

Claim Form

No claim form is required.

NOTE: If you do not qualify for this settlement do NOT file a claim.

Remember: you are submitting your claim under penalty of perjury. You are also harming other eligible Class Members by submitting a fraudulent claim. If you’re unsure if you qualify, please read the FAQ section of the Settlement Administrator’s website to ensure you meet all standards (Top Class Actions is not a Settlement Administrator). If you don’t qualify for this settlement, check out our database of other open class action settlements you may be eligible for.

Claim Form Deadline

No claim form is required.

Case Name

Spegele, et al. v. USAA Life Insurance Co., Case No. 5:17-cv-967-OLG in the U.S. District Court for the Western District of Texas

Final Hearing

08/26/2021

Settlement Website

USAACOISettlement.com

Claims Administrator

Spegele v USAA
c/o Analytics Consulting LLC
P.O. Box 2007
Chanhassen, MN 55317-2007
Phone: 1-888-392-1061
Fax: 952-404-5750
info@usaacoisettlement.com

Class Counsel

Norman E. Siegel
STUEVE SIEGEL HANSON LLP

John J. Schirger
MILLER SCHIRGER LLC

Daniel C. Girard
GIRARD SHARP LLP

Defense Counsel

Thomas J. Butler
Michael Mulvaney
MAYNARD COOPER & GALE P.C.

Eric S. Mattson
SIDLEY AUSTIN LLP

Thomas F.A. Hetherington
McDOWELL HETHERINGTON LLP