Transamerica Life Insurance Class Action Settlement

UPDATE: The Transamerica Life Insurance Class Action Settlement was granted final approval on September 16, 2020. Let Top Class Actions know when you receive a check in the comments section below or on our Facebook page. On October 15, 2020 an appeal to the settlement was filed. Claims will not be paid until all appeals are exhausted. We appreciate your ongoing patience. Top Class Actions will continue to provide updates as we learn more. 

An $88 million Transamerica life insurance settlement has been reached to end policyholder claims that the insurer raised the amount of expenses charged monthly, called Monthly Deduction Rate, beyond what was permitted by policy terms.

Class Members include all those people or entities who owned one or more policies in the TransUltra 115 98/99 or TransSurvivor 115 97/98/99 groups of policies as of Dec. 31, 2019. 

Policyholders argued that, starting on June 1, 2018, Transamerica increased the Monthly Deduction Rates too much. Allegedly, this increase was in violation of the Transamerica life insurance policy terms. 

The settlement website elaborates on this legal news, and explains the Monthly Deduction Rate, and the nature of the Transamerica life insurance polices at issue.

According to the website, the Transamerica polices at issue are universal life insurance policies, providing both a death benefit and a savings elements that can be used during the policyholder’s life. 

Reportedly, policyholders pay premiums that go to accumulating interest in their polices. Additionally, a portion of these premiums also go to covering the Monthly Deduction Rate, or insurance charges and other expenses charged by Transamerica. Policyholders have some flexibility in how much they pay in premiums so long as the premium they paid covered the expenses. 

By elevating the MDR, the policyholders say that Transamerica effectively decreased the amount of money they could use towards the value accumulation. Allegedly, this caused the policyholders financial injury.

The Transamerica life insurance class action lawsuit challenged only the MDR increases and not the premium increases that were possibly not connected to MDR increases, explains the settlement website.

Transamerica denied all wrongdoing, but has agreed to settle with policyholders in the interest of avoiding the continued costs and risks of litigation. Similarly, the policyholders agreed to settle the issue in the interest of gaining some compensation for Class Members who could risk not receiving any compensation if their case was not successful in court.

Per the terms of the Transamerica life insurance class action settlement, Class Members who file claims will be entitled to a minimum benefit of $200, but could be entitled to more.

The settlement website explains that Transamerica will contribute up to $88 million to a settlement fund to benefits those who have In-Force Policies and Death Benefit Policies and a fund to benefit those who have terminated their policies. 

The attorneys website explains that from the $88 million, $8 million will go towards attorneys’ fees. Additionally, Class Representatives will receive an award up to $10,000 for their role in the Transamerica class action settlement.

Class Members do not have to do anything to receive benefits, because Transamerica will calculate the amount to be given to them. Settlement Class Members who have In-Force polices will be paid in the form of a credit made to the accumulation value of their policy. Those with a death claim policy or who have a terminated policy will receive a check. 

Class Members do have the option to opt out of the Transamerica life insurance settlement Class, and must do so by Aug. 3, 2020. Class Members are invited but not required to attend a final hearing set for Aug. 31, 2020. 

Who’s Eligible

Class Members include all those people or entities who owned one or more policies in the TransUltra 115 98/99 or TransSurvivor 115 97/98/99 groups of policies as of Dec. 31, 2019. 

Potential Award

At least $200.

Class Members who file claims will be entitled to a minimum benefit of $200, but could be entitled to more.

Proof of Purchase

N/A

Claim Form

There is no Claim Form for this settlement. Class members with further questions can click here for more information.

Exclusion Deadline

8/3/2020

Case Name

Gail Thompson, et al. v. Transamerica Life Insurance Company, Case No. 2:18-cv-05422-CAS-GJS, in the U.S. District Court for the U.S. District Court of California

Final Hearing

8/31/2020

Settlement Website

ThompsonSettlement.com

Claims Administrator

Rust Consulting, Inc.
Settlement Administrator
Thompson v. Transamerica – 6975
PO Box 44
Minneapolis, MN 55440-0044
info@thompsonsettlement.com
1-877-740-6999

Class Counsel

Andrew S. Friedman
BONNETT, FAIRBOURN, FRIEDMAN & BALINT PC

Harvey Rosenfield
CONSUMER WATCHDOG

Adam M. Moskowitz
THE MOSKOWITZ LAW FIRM PLLC

Defense Counsel

Thomas F.A. Hetherington
MCDOWEL HETHERINGTON LLP

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