John Hancock Life Insurance Policy Class Action Settlement

John Hancock Life Insurance Company (USA) has agreed to pay nearly $60 million to settle a class action lawsuit challenging the cost of insurance charges deducted from policyholders’ account values.

If you own or owned a John Hancock Flex V2 Life Insurance Policy, your rights may be affected by the class action settlement.

The Flex V2, a variable whole life policy, has an investment feature that allows an accumulation of value after charges are deducted.

According to the John Hancock class action lawsuit, the life insurance company violated the policy in three different ways. First, John Hancock allegedly impermissibly considers factors other than mortality expectations when calculating an “Applied Monthly Rate” based on “expectations of future mortality experience.”

Second, John Hancock impermissibly includes amounts in the “Applied Monthly Rate” that should actually be included in the “Maintenance Charge,” the John Hancock class action lawsuit alleges. The policy allegedly permits a maximum “Maintenance Charge” of $8 per month.

Third, the John Hancock class action lawsuit alleges the policy requires the “Applied Monthly Rate” to be reviewed at least once every five policy years and adjusted to reflect expectations of future mortality. However, the plaintiff says the rate has not been modified.

John Hancock denies the allegations and maintains that the rates and charges it applied to its Flex V2 life insurance policies are consistent with the policy’s terms. However, the life insurance company has agreed to settle the Flex V2 class action lawsuit to avoid the burden and expense of ongoing litigation.

The deadline to object to or opt out of the John Hancock class action settlement is April 30, 2018.

Who’s Eligible

Class Members of the John Hancock settlement include “all persons who own or owned a Flex V Scheduled Premium Variable Whole Life Insurance Policy (Policy Form 94-85, sometimes referred to as the ‘Flex V2’), that is an individual life insurance policy, the benefits, payments, or values of which may increase or decrease in accordance with the investment experience of a ‘Separate Account’ issued or administered by the Defendant or its predecessors in interest, the terms of which provide or provided for (1) an ‘Insurance Charge’ calculated using ‘Applied Monthly Rate’ based on the Defendant’s ‘expectations of future mortality experience,’ (2) an additional but separate ‘Maintenance Charge,’ (3) an investment, interest-bearing, or savings component; and (4) a death benefit.”

NOTE: If a Class Member is deceased, his or her estate will qualify as a Class Member of the John Hancock settlement.

Potential Award

Varies, based on the allegedly excessive charges each Class Member paid.

Class Members who purchased their policies on or after Jan. 1, 1997 will receive a payment of $50 to $5,350. The average payment will be approximately $630.

Class Members who purchased their policies on or before Dec. 31, 1996 will receive a payment of $25 to $975. The average payment will be approximately $120.

Proof of Purchase

N/A

Settlement Notice

NOTICE OF CLASS ACTION SETTLEMENT (PDF) »

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

N/A. Class Members who do not opt out of the John Hancock settlement will automatically receive benefits.

Case Name

Larson, et al. v. John Hancock Life Insurance Company (U.S.A.), Case No. RG16813803, in the Superior Court of the State of California for the County of Alameda

Final Hearing

5/8/2018

UPDATE: The John Hancock Life Insurance Policy Class Action Settlement was granted final approval on May 8, 2018.  Let Top Class Actions know when you receive a check in the comments section below or on our Facebook page.

Settlement Website

www.FlexVClassAction.com

Claims Administrator

Larson v. John Hancock Settlement Administrator
c/o Epiq Systems Inc.
P.O. Box 4850
Portland, OR 97208-4850
888-740-7631

Class Counsel

Norman E. Siegel
STUEVE SIEGEL HANSON LLP

John J. Schirger
MILLER SCHIRGER LLC

Daniel C. Girard
GIRARD GIBBS LLP

Defense Counsel

Alan B. Vickery
John F. LaSalle
Motty Shulman
Sean P. Rodriguez
BOIES SCHILLER FLEXNER LLP