Jackson National Life Insurance Class Action Settlement Prelim. Approved

A California federal judge has preliminarily approved a $25 million class action settlement between Jackson National Life Insurance Co. and more than 44,000 California policyholders who claim the company targeted elderly customers and tacked on hidden fees to deferred annuities, including commissions and high surrender fees.

Plaintiffs allege in the Jackson National class action lawsuit that the commissions and surrender fees the life insurance company charged to senior policyholders garnered an impressive profit for the company, and the language was worded in such a way that many seniors allegedly didn’t realize what they’d gotten themselves into. Severe penalty charges for early withdrawals reportedly helped ensure that these seniors also didn’t get out without seriously “paying for it,” too.

Jackson National denies any wrongdoing but agreed to a class action settlement in June 2013 to resolve the litigation.

Under the terms of the Jackson National class action settlement, the company will refund policyholders through either account credits or cash payments that equal 22% of past surrender charges as well as to reduce future surrender charges by the same 22%.

Class Members of the Jackson National settlement include all purchasers of fixed or fixed index annuities that Jackson distributed in California to persons age 60 and older, beginning Oct. 24, 2002 and ending Jan. 12, 2012. Class Members will not be required to submit a claim form to obtain settlement benefits; they will automatically receive an account credit or cash refund in order to make the process easier — probably in consideration of the older ages of most settlement Class Members.

Class Members will receive notice of the Jackson National class action settlement within 63 days after the preliminary approval order was filed, which was on Nov. 19, 2013.

Class Members will have the option to opt out of the class action settlement if they submit their request by March 20, 2014.

A Final Fairness Hearing is scheduled for April 17.

The Jackson National Life Insurance Class Action Lawsuit is Nancy Meadows, et al. v. Jackson National Life Insurance Co., Case No. 12-cv-01380, in the U.S. District Court for the Northern District of California.

Help for Victims of Senior Financial Scams

It has been a long battle for the alleged victims of Jackson National’s massive life insurance scheme, but things are finally coming to fruition for the seniors who say they were taken advantage of.

Senior citizens are often targets of financial scams involving life insurance and annuity investments, usually because their life expectancy is shorter than the estimated payout of the investment.

Whether you feel you were victimized in an annuity scam by Jackson National or another company, you might qualify to take legal action. Find out more and obtain a free case evaluation at the Life Insurance, Annuities Fraud Class Action Lawsuit Investigation.