AXA Equitable Life Insurance Rate Increase Pending Class Action Website Is Live

A pending class action lawsuit website has been established for consumers who may be affected by the lawsuit filed against AXA Equitable Life Insurance Co. alleging that it applied an insurance rate increase to policies.

A class action lawsuit accused AXA Equitable Life Insurance Co. of slapping policyholders with an allegedly excessive insurance rate increase through misinformation.

AXA sold universal life policies under a line called Athena Universal Life II. Policyholders were told they were able to keep the Athena UL II insurance by paying a minimum amount of premiums, unlike other whole life policies, according to the class action lawsuit.

“This structure allows policyholders to minimize their capital investment and generate greater rates of return through other investments,” the complaint explained.”

AXA was also accused of garnering huge profits through the rate increase — about $500 million, according to the complaint. The plaintiffs say they and other affected Athena UL II policyholders were forced to either pay the exorbitant rate increases or surrender the premiums they had already paid.

The insurance company knew it would increase rates after it sold the Athena UL II policies but concealed this information from policyholders, the plaintiffs claim. The class action lawsuit accused AXA of breach of contract and of violating California and New York state laws.

In August 2020, a New York federal court agreed to certify proposed Classes in the litigation. Under the terms of certification, Class Members who do not exclude themselves will take part in the outcome of the class action lawsuit.

Several Classes have been certified by a federal court:

A Nationwide Class of consumers with Athena Universal Life II policies issued by AXA who were subjected to insurance rate increases by AXA around Oct. 1, 2015. Individuals must have owned the policy on or after March 8, 2016.

A New York Class of consumers with Athena Universal Life II policies issued by AXA without lapse protection issued after July 10, 2006, who were subjected to insurance rate increases by AXA around Oct. 15, 2015. Individuals must have owned the policy on or after March 8, 2016.

The plaintiffs said they and other policyholders were subjected to an unfair rate increase on certain Athena UL II policies by AXA starting in March 2016. Though AXA only increased rates on a subset of Athena UL II policies, the class action lawsuit contended the parameters of the policies affected were arbitrary, affecting only policyholders over 70, with face values over $1 million.

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