FG Life/OM Financial Life Insurance Class Action Settlement

A California Court has preliminarily approved a class action lawsuit settlement with Fidelity and Guaranty Life Insurance Company (“FG Life”), formerly known as OM Financial Life Insurance Company (“OM Financial”), over claims it deceptively sold and marketed life insurance policies. If you currently or previously owned an Indexed Universal Life Policy since 2007, you may be eligible to claim certain benefits.

The FG Life class action settlement resolves allegations that FG Life/OM Financial violated certain California consumer protection laws by:

• engaging in misleading and deceptive sales presentations;
• encouraging customers to obtain a mortgage on their residence or home equity line of credit and use the proceeds to purchase IUL policies;
• misrepresenting the IUL policies as “investments” or “investment plans”; or
• improperly describing the IUL policies’ costs, benefits and terms.

FG Life denies the allegations and contends that its Indexed Universal life insurance policies provide valuable life insurance and protect the holder against substantial market uncertainties and downturns, but agreed to a class action settlement to resolve the litigation.

Who’s Eligible

Class Members of the FG Life life insurance settlement include all persons who have or had an ownership interest in an IUL Policy issued by FG Life or OM Financial between Jan. 1, 2007 and March 31, 2014.

Potential Award

Interest Enhancement. Class Members with an active IUL policy as of March 31, 2014 will automatically receive a 1% increase in the minimum guaranteed interest rates of each active policy. For example, if your IUL Policy provides for a 1% guaranteed minimum interest rate, then that guaranteed interest rate will be increased to 2% for one year.

Inactive Surrender Benefit Relief. If you had an IUL Policy that was surrendered or lapsed as of March 31, 2014, you can elect to participate in the Claim Review Process and potentially obtain Inactive Surrender Benefit Relief. To get this relief, your claim form must be received by Oct. 2, 2014.  You will receive a pro rata share of $1.255 million fund created for these claims, which could amount to 10%, 30% or 60% of the surrender charge you paid when the IUL Policy was surrendered or lapsed.

Proof of Purchase

Name, Address & Policy Number

Claim Form

Claim Form Deadline

10/02/2014

Case Name

Eddie L. Cressy v. Fidelity & Guaranty Life Insurance Company, et al., Case No. BC514340, Superior Court of the State of California, Los Angeles.

Final Hearing

11/18/2014

Settlement Website

www.CressySettlement.com

Claims Administrator

Cressy v. Fidelity & Guaranty Life Insurance Co. Settlement Administrator
c/o Dahl Administration
P.O. Box 3614
Minneapolis, MN 55403-0614
1-888-454-3019

Class Counsel

P. Michael Yancey, Esq.
James M. Terrell, Esq.
MCCALLUM, METHVIN & TERRELL, P.C.

Gary A. Waldron, Esq.
WEINTRAUB TOBIN

David I. Lipsky, Esq.
LAW OFFICE OF DAVID I. LIPSKY

Defense Counsel

Frank A. Taylor
BRIGGS AND MORGAN, P.A.

James S. Azadian
ENTERPRISE COUNSEL GROUP, ALC